the picture is missleading.. see how the intake lobe is pointing at 12:30 ? it should be pointing to 11:30 and exhaust should be pointing at 12:30....
I think what they are saying is seeing as there are 2 TDC if you turn it over till the intake lobe is pointing in the UPWARDS direction and you put crank at 0 it will be at the compresion stroke TDC and then you can set dist to #1...