[K Sykes]

You've got three possibilities

1. All is set up right and for whatever reason, you aren't reading where the valves are right (double check you are looking at #1, not #4)
2. The wires might be on the distributor wrong (good catch by the earlier poster that thought of that)
3. Someone rebuilt the engine and did the cam timing backwards.

Occams Razor says, 1, followed by 2, with three highly unlikely.