I did everything with the engine in the car so flywheel timing isn't the culprit. The suggestion of getting one cam 180 degrees off was made by one of the local indy techs I spoke with. That was what got me to pull the valve covers again, go to TDC on #1 and recheck the marks. Both lined up with the marks on the sprocket and cam tower.
One other suggestion that Mike Tangas made in a private email was that the distributor cap can be damaged by being too far out of time. I'm wondering if I damaged the cap then with all of my initial tinkering with the distributor as I do know that I had dropped it in out of time a couple of different ways before getting it in correctly.
'87 560SEL 267K (177K on motor) Blue/Blue
'98 Buick LeSebre 60K (wife's car)
'56 Imperial Sedan 124K
'67 Dodge Monaco 130K (Sold)
'87 Chrysler 5th Ave 245K and going strong (sold)
'73 Plymouth Satillite 175K (sold)
'96 Chrysler LHS 80K (totaled)