1) Putting the timing cover back on tonight. While off, I replaced the oil pump gasket and packed the pump. I've seen some posts that people prime it after assembly. If I packed it, should I also prime it? Apparently that involves spinning the pump shaft with a drill and screwdriver. Can somebody list the specific procedure? Is it spun on forward or reverse? Slow, med, fast? How long? 2) After that, I'll drop the distributor in. The distributor shaft has a small amount of vertical play. 1/8", or so. That OK, or do I need to shim it?
Yes, you should prime the pump. If you don't have a oil pump priming tool you will have to find a way too spin it. You can cut the handle off a screw driver and use that with the drill. Spin it fast untill you get good oil pressure. 1/8 in. is wat too much play. I can't remember the spec. I think it should be about .030. Did you set the oil pump clearance up?
Get a spade style drillbit and cut the tip off of it. Wrap whats left of the drill bit with a couple of layers of electrical tape. Insert into the distributor hole and into the slot in the pump shaft. Run your drill clockwise. Hold the drill carefully with two hands because when the pressure comes up the drill will slow way down. Be ready! Do this with a valve cover off so you can confirm your oil flow. Oil will come out through the pushrods on a '70 or later engine.