Check the chain stretch via the cam timing gear mark and crank indicator very carefully. I agree with Pindelski that this is easyest if you remove the fan and shroud. Then you can crank with ease from above and really get the cam gear in perfect alignment with the marker.

If you have 2 degrees or less chain stretch, you're not going to be impressed with re-timing the IP and putting in an offset woodruff key to get the valve timing back to where it should be. A couple degrees off just isn't a big deal in performance, and even 3 degrees will be more of a fuel economy issue.

Your off the line acceleration problem is more likely to be solved with an ALDA adjustment. I'm sure you can find a write up in the archives. The ALDA adjustment on the IP is very easy and can provide a profound improvement in performance. No other adjustment is so immediately satisfying!

Your rough idle is most likely caused by injectors. Try some diesel purge. I finally built my own pop tester so I could match my injectors. Now I've got a great idle.

Bruce McCreary
(2) '85 300Ds, '83 300CD