The above instructions are correct. However, the distributor doesn't effect timing. Timing is set by a crankshaft sensor. The dist has a CAM sensor in it and the dist housing has to be set with a scan tool that will display cam offset. it should be 0 deg +/- 2 deg at 2000 RPM. Turn the dist to get this reading. This lets the computer know when to fire the injectors.

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84 500 SEL (307,xxx miles)