cant tell a damn thing from the picture but basically what I do is put a grease pencil mark on the 14deg mark (or whatever you want to set it at) and then spin the distributor until the piinter is pointing at my mark. Make sure to pull the spout connector when you set the timing or it will end up way retarded.
Are you using a Advancing Timing light with the dial... cuz if those aren't set correct then you can throw your timing off. But if you have a standard one then you just mark 10* or whatever you want it at and then line it up with the pointer by turning the distributor.
There's the sharp edge on the right side and the circle on the left i'm assuming? Kinda hard to see in the pic, if so then you want it at the sharp edge to the right.