The car is an 89 420 sel with 195,000 - m116 4.2l v8 engine. I recently replaced the timing chain, rails (three on top), tensioner rail, chain, sprockets, tensioner and cam oiler tubes (the plastic pieces).The chain and such were all original (as far as any records I have state) and I changed everything after the dreaded chain slap started occurring. One of the guides was broken in several places and I can't believe that it didn't get caught in the chain and jump time...

My question is related to the timing. I put everything back together, crank at tdc and both cam marks aligned along with the rotor pointing towards #1. When I use the timing light, it shows that I am out at 20 (there is a pin in the balancer at this point). How can I correct this? The car started and ran a little rough initially but seemed to smooth itself out somewhat. The idle is quiet and the car does not shake. I did try moving the rotor but it didn't help.

In addition, I can still hear a knocking noise from the engine. Not as loud as the chain slap from before but similar. It doesn't sound like it's coming from a lifter as it appears to be based in the front of the engine - could I have a bad tensioner? Everything seemed tight when I put it back together and the engine cranked several times (by hand) without any problems.

In addition, I took it for a short drive and found smoke (oil smell) coming from the valve cover near the 4th cylinder. I didn't see any oil coming out of the cover and thought it might just be some excess oil on the exhaust but I am concerned that it might be something more serious.

Any thoughts would be appreciated. I have searched the forum for hours but haven't found what I thought could help. Thanks.