From what I see, my assumption is correct! You have a rebuilt distributor with the newer type of sensor so your cylinder 1 is 180o off from where it was in an original bosch. Try bolting it to where, the sensor is under the distributor instead of over, then pick to where the rotor is facing and set that one as cylinder number one. See if that works! If it does, and you want the sensor at the top then turn it back around and switch the plugs 180 degrees, cause in this case the rotor is showing you cylinder 4 and not number 1 at tdc.
Correction: I don't think it will work in any position other than with the sensor under the distributor. You would have to put the rotor arm 180o off too and that is not possible unless you take the distributor apart.
PS. I assume your distributor is rebuilt and someone just didn't turn the back of it around to match the new sensor. I could be wrong!
PS2. I assume you were unplugging the blue sensor when trying to time it, right?