I ran into the same problem with an H dist. As with yours it was running & quit, can't time rotor. Could get it to start & run short time after checking timeing, valve timeing ect. Took the distributor off. Replaced if with an old magneto off an H that had not been run for 20 years. It started right away & runs great. Have taken the distributor apart.No excess wear. Weights & cam are free, springs good. No loose or broken parts. When you turn the dist shaft to open the points the points just open when as you say the rotor is between 1 & 3 on the cap. Cap & rotor are identical to those on my 450. Please stay in touch. I am still puzzled have worked on many of these old tractors. Never run onto anything like this.
Ted
Ted