If the groove is all the way around there will be no oiling problems no matter how how f'd up the distributor install is, but if it's only half way around, make sure the gear dimple is lined up with the rotor contact. If a distributor is rebuilt and the gear is put back with the dimple 180deg out of phase with the rotor contact, it will result in about a 16deg timing offset. (That position will also affect oiling) To get it to run right, you'll have to twist the distributor WAAAY out of it's normal position to get it timed. (or just switch the plug wires by one tower on the cap). But it will still be pointed the wrong way.
Verne