There is also a camshaft pos sensor in the dist. Did the previos owner have the intake gaskets replaced recently? When stabbing the dist it must be at 0 +/-2 degrees cam timing or the code will set. You can try to turn the dist with the engine off and clear the code and see if it is close enough to clear the light. Usually when it is set, the foward dist cap screw should be 1/8" from the upper intake plenum. Here is a pic of my new engine on the stand showing how close the dist should be to the intake:
Look at the gap at the end of the torxdriver:
The camshaft pos sensor is the plug in the side of the dist. and can be changed without removing the dist by rotating the engine until the gap in the reluctor wheel (I think thats what its called, sheet metal piece that the rotor is attached to) lines up over the csps. I would recommend pulling the spark plugs and turning the engine over to TDC. With the dist cap removed, the electrode on the rotor should point directly at #1 cyl. If it is slightly off, this will set the code and means the dist needs to be pulled and rotated 1 tooth in the appropiate direction. Once it is all lined up, lock the dist down like I described above. Clear the light and see if it comes back up. If it looks good, keep an eye on it. Sometimes it can be close enough to work, but when you floor it and the comp starts making drastic changes the light could come back on. I would get it as close as you could and take it to a shop you can adjust it with the proper scanner/computer. This is the only way to actually see the 0 degrees cam timing. Be carefull when removing the dist cap screws as they can crack the dist housing. Back them out a 1/4 then back in an 1/8 and keep doing this until they come out. This helps to clean the hole out and preventsthe plastic from distorting and cracking the housing. If you feel uncomfortable at all doing any of this, stop, get a manual. If your still not sure, take it to someone. I did mine last year when I replaced the gaskets and had the dealer adjust the timing. My issue was that even with all of the adjustments, I still got the code. Come to find out the used dist I picked up was for a 6 cyl. Good Luck.