The distributor looks like it is oriented properly. But, you forgot a very important step which I will cover below.
The typical method for distributor install and initial timing set is as follows:
1. Manually rotate engine over until piston #8 is at the top on the COMPRESSION stroke as verified with corresponding spark plug removed to note escaping compressed air and probing with a dowel or long screwdriver to feel that the piston has indeed reached the top. The timing scribe on the crank balancer will then also be at or very near the zero degree mark on the timing index, indicating zero degrees below top dead center (BTDC). This step can even be done before the distributor is removed for future reference.
2. Install the distributor with orientation of the vacuum advance canister in a position that will allow roughly equal timing adjustment rotation in both clockwise and counterclockwise directions, along with good vacuum line attachment.
3. With the distributor cap loose from the distributor and the rotor in place, the rotor contact will be pointing to the spark plug wire location on the distributor cap that the #8 spark plug wire must be connected to as the cap is set in place. Then the remaining spark plug wires can be routed one at a time in clockwise fashion around the distributor in accordance with the engine firing order as cast into a runner on the intake manifold.
Step #3 is necessary any time the distributor shaft and the engine itself have been rotated independently of each other, such as when the distributor is physically removed from the engine. Any time this occurs, the initial basic timing relationship between the engine and the distributor is out of whack and will need to be re-established. This is why removing the distributor when it is not absolutely necessary is not advised. I understand and sympathize with the vision issue that prompted it, but doing so has created extra steps for you. The good news is, no harm has been done and you will be able to chock this up to another lesson learned.
My advice to you is, go back and re-perform step #1, making extra certain that you have #8 truly at the top of the compression stroke. Then you can skip step 2 because the distributor looks to be well oriented. Moving to step 3, you need to determine what plug wire location the rotor contact is adjacent to with the #8 piston at TDC comp. That cap location must have the #8 plug wire connected to it. If it does not, then you will need to make it so and proceed thusly from there as I outlined above in #3.