Ok, my guess is that I did seat it correctly then. I was able to push the distributor against the head completely and it held in place w/o the bolts on. I only cranked the bolts down to about 20ftlb, so there wasn't massive amounts of force used to keep the distributor in place.

I didn't check if it would spin all they way freely before mounting, never thought of that. Will do next time. Thanks for all the help guys.