Going back in my memory, there is a shaft that runs down to the oil pump. The shaft connects the bottom of the dist to the top of the pump. The cam shaft mates to the pump via gears. I think there is a roll pin on the pump that probably sheared, or a roll pin on the dist that might have sheared.
Remove the dist assembly, be careful they usually freeze on. If it will not budge use plenty of thin spray lube to free it. This may take several days ( the dist break very easy).
After you remove the dist, see if you can turn the shaft in the engine, w/ a screw driver, it should NOT be able to move. Examine the dist, that might be the problem.
Again, this is all on past memory. I may have some literture on the 163, it is Hyster style though. There isn't much difference.
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