Yes and no. Your direction on the theory of operation is correct however, the description is not. The 00 GC with a 4.0 uses a hall effect sensor on the distributor. The position of the distributor tone ring is critical to the alignment on the camshaft and crankshaft timing. There is a small hole in the distributor housing that will line up with the tone ring. This should be kept in place by a small pin during installation. With the cam and crankshaft at top dead center, then you can install the distributor into place. Once it's installed with the retainer tightened, then you can remove the pin. Do not rotate the distributor once it's properly seated, otherwise, that minute rotation could mean 2-4* off the top dead center. The engine should run even when the sync is off at 2* but barely any power.
On the question about the fuel pressure regulator, a test gauge should answer both the holding pressure in the fuel rail at key on and the integrity of the fuel pressure regulator when keyed off.