it is a common issue, you either hit the vacuum advance on the rad hose or the a/c compressor due to clearance.
what has to be done is the distributor needs to be pulled and indexed one tooth opposite to the direction you need to move the advance to obtain the timing you want.
it isn't hard to do but it can be frustrating. the distributor can be stuck, the oil pump pick up can move around at the bottom of the shaft and make it VERY hard to push the distributor back into the block with correct gear alignment. you may need to bump start the motor to get the distributor to seat.
i had to do this on my car and it took a couple of tries to get it right, sometimes it can jump 2 or more teeth when you thought you got 1 tooth.
if you are not comfortable with doing this a mechanic should be able to do it pretty fast,
as a run down.
* turn over the engine so #1 is on the compression stroke, you have to pull the plug and feel with your finger you want air to blow out and the pistion around TDC so you can make sure your rotor is aligned to #1 on the cap.
* loosen distributor bolt,
* remove the holding plate under the distributor base.
* mark #1 on the distributor base using the Cap as reference, you will need to hold the rotor on that mark when you reinstall.
* pull distributor up, try keeping the mark aligned with the rotor center. you don't have to pull it completely out of the engine, but up enough so you can move the gear on the end of the distributor shaft.
* rotate the distributor to center the vacuum advance between your 2 end points(Hose or A/c compressor) so you have a range of movement for the timing adjustment.
* push it back into the motor with 1-2 teeth of difference as needed for the clearance.
* at this point the distributor might not go back into the block this is because the oil shaft isn't aligned.
option one, you fight with it for hours hoping god will hear your cries or you get lucky and it pops in.
option two, you have to pull the distributor out and use a REALLY long socket extension (pray it doesn't fall into the engine or you may need to pull the engine out to get your socket back) and move the oil shaft just enough so the distibutor catches it and it pops in.
option three, bump start the motor, you can use a remote starter and the bump start will move the engine slightly and pull the distributor down into the block
problem: either it works or you can cause the oil pump shaft to snap or the pump shaft could pop or break and fall into the oil pan, and the engine needs to come out to make repairs.
now i've used the bump start method a couple of times without a problem and one time i even got lucky and the distributor went in on the first try.
this is why you may want to have a mechanic do the job if you feel uncomfortable.
* once the distributor is installed then make sure you have seated it and the rotor is aligned with the mark for #1(and your not 180 degrees out opps that can happen if you are not careful.usually this happens because on the first step the engine was not on the compression stroke at TDC for the Power stroke to start.)
* then put the distributor plate back in but do not lock it down.
* setup your timing light and start the engine once running then set your timing and lock it down.
again it isn't a hard job its one bolt but it can be frustrating.
you can read more here
http://www.crankshaftcoalition.com/wiki/How_to_install_a_distributor