While installing, the rotor seems to be positioned between two cylinders. How is this possible?

In this case, the adjustment with the green LED was likely done in the wrong direction. The direction in which the engine rotates determines the direction in which you should rotate the distributor housing.

If the distributor rotates ClockWise (CW), rotate the distributor housing counterclockwise until the green LED just lights up.

If the distributor rotates CounterClockWise (CCW), rotate the distributor housing clockwise until the green LED just lights up.

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