For the plug cable orientation in any distributor cap, #1 can be any hole ya wanna make it, that depends upon the exact position the distributor is stabbed in to begin with.
So ya first need to stab the distributor as described in this thread:
http://www.forums.IHPartsAmerica.com/ignition-tech/640-new-guy-clueless-about-ignition.html
We must use cylinder #8 as our reference point because of the design of the crank hub that contains the timing Mark. And cylinder #8 must be on it's compression stroke, not exhaust stroke. That is real easy to visually identify if the valve cover on the passenger side is removed for observation of the rocker arm positions for cylinder #8.
Then...you determine which plug cable terminal is #1 and then wire the cap in the firing order sequence, that distributor rotates clockwise when the engine is running.
But! Those delco hei converted distributors can be a real bitch to orient correctly since they have a very limited/no range of adjustment for base timing once installed. Has this distributor been installed in any of your engines before and has the water neck/thermostat housing been modified to allow fitment? If not, ya got some additional work ahead of ya that is a real pita!
As for the bushing...good thing ya found that!
You can see the serrations on the circumference, the bushing was originally just tapped into the receptacle in the block when it was new and the serrations "crushed" enough to retain it. What I do on the bushings now is clean 'em to a point of sterility (same for the hole in the block), and then use loctite red on the bushing and push into place. Once the distributor is stabbed, the bushing cannot move.
You will find more information regarding the fitment of the hei-converted distributor if you use "dui" as a keyword in the search engine on the ignition sub-forum. We sell the "dui (davis unified ignition)" version of these distributors for IH engine applications. Over the years, other vendors have also modded the delco hei sparker by adding an "extension" adapter to the drive section, I have one of those here now and those are just as problematic (if not more-so) to deal with as the dui version.