Hi,

Yes, its an allen bolt which is normally loosened to adjust the timing. Remove it completely and unplug the wiring for the trigger points not at the distributor but at the connector mounted infront of the air filter and the distributor will just lift off. Not sure what the timing is for your year but maybe check the timing before you start and just set it back to that value if your sure its correct.
Yes #1 cylinder is on the right nearest the front of the car but you'll see TDC marked on the distributor with a small notch so use this to set the crank position.
While your setting the timing you might also want to check the dwell if you have access to a meter.

Good luck.