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#2 is correct. But, you also need to understand the secondary purpose of that part. Yes, it holds the distributor tight so that it will not move during operation. But the other MAJOR purpose for that part is to be the pathway for electrical ground from the engine block to the distributor housing. So....the contact points on the bottom of the part at each end MUST be free of paint, etc. so that electrical conduction can take place. Likewise, the distributor housing flange and the engine block where those contact areas touch must also be free of paint and insulating 'stuff'. Otherwise, you WILL have ignition problems.
Thanks guys for the help and extra info!
Do have to have to apply something to the bottom gear of the distributor before 'I slide it in'?
Maybe some assemblt lube or dip it in oil?
The distributor is laying on the table (in a rag) for quite some time. So there may be some other things to check/do?
If you happen to have some assembly lube on hand, I think that would be the #1 choice, especially if you won't be starting the engine right away. Otherwise, motor oil will be OK, too.
What about the gasket for the the distributor?
Go with the gasket and some Permatex 'High Tack sealant', or leave the gasket and use just some 'Black RTV'? (I'm using an aluminum intake.)
The little fiber ring gasket was part of the intake gasket set from Fel-Pro.
I used Permatex Black and pretty much glued the ring gasket to the Intake semi-permanently. You can't "glue" both sides because you may need to rotate the distributor another day.
Distributor hold down clamp
