I'm trying to get TDC on #1 to set/check my valvetrain. When I get the distributor to point to #1 the balancer is not near 0. When I rotate the engine to get the balancer at 0, the distributor is pointing about 3 cylinders off counterclockwise from #1. What's wrong here?

Ken

Dist. is positioned off by a few teeth most likely. Is this a new motor and or new dist. etc.?

It has about 1000mi on the engine. I'm getting a bad tick from the valvetrain and trying to reset/check my valvetrain.

What's the right way to correct this?

Pull the #1(front drivr side) plug out and turn the motor over. Stick something in the hole to check when the piston is at the top. Don't leave it in there while your turning the crank because it can get wedged against the piston and possibly damage something. Just check it every 30* or so. When it's all the way up your rotor should be pointing in the general direction of your either #1 or #6 plug wire. That should get you close.