On intial fire-up for a new engine, I would always use a drill to pre-
oil the engine. After that, cranking the engine does give it enough
oil pressure for start up. I wouldn't use the starter to give it
oil pressure for a first time start up though.
As everyone has stated, the dist shaft shouldn't be able to turn if engaged with the cam. If it can, there's the problem but of course, you wouldn't have had any spark at the plugs either.
I'm really hoping you get the problems worked out before our annual get together in a couple weeks. (Dec. 1, I think) I can't wait to see this thing!
Larry