[Ford blue blood]

Very normal and quite common. Not a problem. There is a keeper on the shaft that will keep it from coming out (have to pull the oil pump to remove the shaft). Easiest way to engage is to insert the distributor, push down and engage the starter to turn the engine over. Then bring the engine back to top dead center.

I use a VOM to set the points. After making sure it is TDC on # 1 advance the timing marker until it is on the 8, 10 or 12 degree mark buy turning the crank shaft with a wrench on the balancer bolt clock wise (as you face the engine). DO NOT back up if you over shoot the desired timing mark, natural slop in the timing chain will make the timing off a little. Put the VOM on ground and and the point terminal on the distributor and adjust until the points just open (remember the rotor will turn CCW when running so to open the points at the desired timing turn the distributor CW).