JRJ,
Yup youre right:
#1 has to be at TDC (also slip the timing cover and damper on at some point and make sure that when buttoned up the pointer really says TDC when it is really at TDC).

And then the cam timing marks have to line up when the #1 is at TDC. You can (and should) "Degree" the cam to make sure, but I gotta admit, the first couple cams I did I just set em on the marks and called it good.