At this point, I think you have only the option of bringing #1 up to TDC with a dial guage and making sure the cam marks are lined up. Use the offset keys if you need to compensate for chain stretch, or replace the chain. Put the damper back on and mark your NEW TDC with paint and time the engine around 8 BTDC using your new mark as a reference.

I still subscribe to the "wrong pointer" theory. Can you check the year of the block from the serial number below the head?

__________________
Chuck Taylor
Falls Church VA
'66 200, '66 230SL, '96 SL500. Sold: '81 380SL, '86 300E, '72 250C, '95 C220, 3 '84 280SL's '90 420SEL, '72 280SE, '73 280C, '78 280SE, '70 280SL, '77 450SL, '85 380SL, '87 560SL, '85 380SL, '72 350SL, '96 S500 Coupe