If it really is on # 1 cylinder on compression,
The rotor is going to point to that cylinders distributor cap terminal,
period.
Or it wouldn't run.

It is possible to put the distributor in incorrectly so the rotor doesn't
point to that little notch on the top edge of the meal distributor body when
it's on # 1 - that would be a distributor that's 'indexed' incorrectly, but
things can all be kept in proper relationship anyway so it'll run. 
I wonder if it's  exactly on TDC for # 1  ....you didn't mention where the
crank pulley notches are.
Scott
www.turbovans.com 
Like the distributor is 'indexed' incorrectly .....but it can still run. 

-----Original Message-----
From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf Of
John C...
Sent: Sunday, July 22, 2007 9:24 AM
To: vanagon@GERRY.VANAGON.COM
Subject: Rotor Position?

Hi All,
I started to adjust the hyd valves,
#1 cyl is on TDC ( pass side, front ) on compression stroke.
But, the Rotor is pointing in the direction of the crank pulley.
I'm remembering that it should be 180 different,
pointing towards # 3 cyl, &, the electrical plug direction.
And, does it really matter?
Engine seems to run good right where it is.
But then, I'm a little Anal Retentive, & this kind of thing bugs the
bjepppers out of me :o)
Any help greatly appreciated!
best,
John C...