Well, I figured it out. I partially feel like an idiot, and I partially don't. Tough to say....
So I went in and set #1 TDC, felt the compression release by my thumb covering the #1 hole as I've done what feels like a million times now....Pulled the cap after I KNOW for FACT I hadn't set it 180 off....low and behold, the rotor is like 270 degrees off...not even close. I pulled the rotor off, went to reset the distributor to find that it was already set to #1 wire.
WTF right? So I put the rotor back on and put the cap back on and got ready for a test fire. Hit the key, came to life (a rough awakening to say the least) for a brief moment, popped and died. Reset #1 TDC AGAIN and pulled the cap.....now it was facing about 90-100 degrees off from the #1 wire. Reset it AGAIN.... this time leaving the cap off. Hit the starter and cranked it a few times, let off, found #1 TDC again, and the rotor was off again....this time maybe half as bad as the last.
So I barred the motor over by hand to see if maybe I had bad teeth on the distributor drive on the cam. Tight all the way around like a new motor. I was heading back to TDC on 1 and had lost my balance and I leaned down and missed putting all my weight on the rotor and grazed it on the way to the riser to catch myself and the rotor spun. WTH?
Pulled the rotor off, looked at the shaft and saw the slot...put the rotor on and gave it a twist. It spun on the shaft. Looked up inside the rotor and the tab that locks into the shaft of the distributor was not there. At all. Not broke off, partially there, filed or tampered out....just never filled the mold. Ran to the marine shop and showed it to them and exchanged it for a new one....and it spits right off smooth as can be....
I can't believe I missed this! To be fair, how often does something like this happen to a guy anyhow?
I thank you all for the input and ideas everyone!