I know that this has been discussed in other posts, but it bears repeating. When things just do not make any sense, there is always the possibility that someone has buggered up the works with a less than professional attempt at fixing something else in the past that leaves you stumped. If the timing marks on the cams and the distributor just do not match up with what the crank indicates, then no, they are not aligned properly if the engine runs. Why don't you check the "truth" of the crank timing by pulling the #1 plug, and cranking the engine till it blows your finger off the hole? When it does, you know that you are at TDC on #1, you should also see the cam lobes fully released from the valve stems. If the cam gear is aligned with the timing mark, then distributor is at #1, then the crank mark MUST be at or near 10 in your case. If it is not then someone has messed with the allignment of the timing mark.
Be methodical and don't assume that it can run even if what you see appears mucked up. You have a problem that once fixed, will clear the haze.