I have just installed a rebuilt 1.3 L engine in my 1986 Suzuki Samurai and need to know how to set my distributor and time it.

the only way that the adjustment can be so far out is that the distributor was pulled and reinstalled 1 tooth out

there 2 issues, here.
first all dizzy get hot , 180F is the engine temp and the dizzy
will get near that temp. its unavoidable. that fact.
or worse parked and hot soaked,

the ignitor is bad.
a rebuilt dizzy from CARDONE , is about 1/2 the price of the internal bad parts. (VR sensor and ignitor)

need a link to the part?
you get to find out early or late
see ignition choice.
http://www.cardone.com/find-parts/vehicle-parts-listing?make=Suzuki%20Trucks&model=Samurai&year=1988

allstores in usa can get this part., all.
if not , avoid them. like zoned. avoid.

i think rockauto.com sell em. but that takes time.

same as all non boxer 4 bangers.
1,3,4,2.
next is distributor rotor rotation, then timing, and well RTM yet>
read the manual.?
it's free...
Samurai. its called in usa, but jimny others places.

see the 3 manuals? its all there.
http://www.fixkick.com/sammi-stuff/index.html

Your carburetor needs to be re-built

firng order is 1-3-4-2 see diagram of distributor cap below.

ait fuel not being adjusted correctly is usual cause.

First, kick his ***. 2nd,, kick your **** for allowing him to mess with your car.. LOL 3rd, Grab a drink for both of you and tackle this together. Remove the spark plug on cylinder #1. Rotate the engine till you get it coming up on the compression stroke. You can hold your finger over this to do it. (Don't be using the starter) Pull the distributor cap and mark on the distributor itself where the #1 wire should be. Now. Put something like a straw into the spark plug hole and continue rotating the engine until it reaches the top. Now look at the distributor and see where the rotor is pointing.. Your BUDDY, should know what to do next. The reason it is currently running is because the timing is too late. Whenever disassembling anything on an engine, notes should always be taken.

check your plugs...one might be faulty or installed wrong.

It usually is the cylinder closest to the crankshaft pulley, if your standing front of the vehicle it should be the one closest to you

I have found it easier to remove the engine to replace the clutch on my 1986 Samurai it you have the proper tools to pull the engine it took less time than pulling the transmission in my experence.