If you do line up the ignition rotor in the cap by way of aligning the mark on the front pulley and the timing tab, The rotor should actually be pointing just a bit PAST the # 1 terminal post. The spark needs to occur BEFORE TDC. And yes, the points open to create the spark in the coil, If you haven't done so already and want to verify one more time, You need to verify that your on the compression stroke. You should be able to remove the plugs ( to make it easier to spin. Hold a finger over the plug hole while you "bump" the motor over, when you feel compression use a wrench or ratchet socket on the front bolt and slowly turn to align the front pulley mark as you approach the mark is when the rotor should align with the post/contact/connection for the #1 plug wire. If you do not get compression, then it's time to remove the rocker cover next..