Just to clarify - there are TWO top dead centers for each full cycle; you have to stab the distributor at TDC on the COMPRESSION stroke. If you stab it at TDC during overlap (end of exhaust stroke, beginning of intake stroke), then you'll be 180 degrees off and the engine will do just what you're describing.
Pull the pass. valve cover. Rotate the engine until the timing pointer is coming around to TDC AND both valves are closed. THat's TDC on the compression stroke. Rotate the engine until the pointer is at 12 or 14 degrees before TDC -- that's where you want your timing set for initial start up. Stab the dist. with the rotor pointing as closely to the #1 plug wire as you can. If that's what's causing your problem, it should fire right up. When it does get a timing light on it and set the timing with the spout out engine warm - I'd try 14 btdc with your set up.