Of course, when the rotor is pointing directly at wire #1, the plug will fire. And you want this to occur at some point before TDC but probably not as much as your indicating.
The way I look at it is, one revolution of the rotor (360°) equals 2 revolutions of the HB (720°). So each plug position on the distributer is 45° apart (360°/8) and is equal to 90° rotation of the HB. If you're estimating that the rotor is pointing in the middle of wires #1 and #8 that would be about 22.5° on the rotor, or 45° on the HB. That seems like a lot of advance to me. I wonder if the distributer is off by a tooth at the cam.
Of course, I'm not the expert on these engines like some of the other guys here, so see what they have to say. It just seems like a lot of advance.