You are CORRECT on the 1-3-2 firing order. When you determined #1 TDC by holding your finger over the #1 sparkplug hole did you verify if the rotor was then pointing to the high-tension terminal marked #1 and the points has JUST begun to open?
(Someone MAY have installed the distributor in a non-standard position.)
Once you determine that the distributor position is CORRECT, arrange the wires in firing order, in the direction the distributor turns. (Not sure which way that is, but easy to verify by observing the rotor's rotation with the cap off while cranking the engine.)
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Today's Featured Article - The 8N and the Fox - by Zane Sherman. Dec. 13 1998, Renfroe, Alabama. Last niht I dreamed about the day that I plowed the field of about 10 acres over on what Jimmy and Dandy called the Ledbetter field. I was driving the 1948 8N Ford tractor that Jimmy bought in 48 new This was prebably in about 1951 and maybe even befor the house was built. This would have made me to be about16 years old and I drove the tractor for nothing and would have paid to drive it if I had had any money which I didn't, but neit
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