There is no timing adjustment on a 560. The timing is determined by the crank sensor on the flywheel. Rotating the distributor doesn't change the timing. It can misalign the outputs though. You will note how wide the rotor tip is, that is so it isn't critical where the rotor is when the spark is created as long as the rotor tip is generally pointed at the proper plug wire.

The cut-out are for balancing.

The way to tell if you are at TDC #1 would be to take the valve cover off the right side and look at the cam lobes on #1 cyl, but that is too much work. You either are right or one turn of the motor wrong. Either find that bolt in the center of the harmonic balancer and turn it or take the distribiutor out and point the rotor 180 deg from the #1 position.

__________________
Steve Brotherton
Continental Imports
Gainesville FL
Bosch Master, ASE Master, L1
33 years MB technician