The lugs on the rotating magnet can be straightened and used. They should almost touch the pole piece (the stationary part with the 4 tangs sticking up), but
not actually touch.
When you rotate the distributor, I think all 4 of the lugs on the magnet should index (line up) with all 4 stationary tangs at the same time.
When the lugs on the magnet go past the tangs on the pole piece, it generates a signal in the pickup coil, which triggers the basic spark timing ("basic" meaning: before the ECM does its thing to it). As long as those 4 pairs index every ninety degrees of distributor rotation, you're okay.
[This message has been edited by StuGood (edited 11-20-2000).]