For what it's worth when I built my M104 I used a new chain and the bottom end was set to tdc using a dial gauge on cyl 1, not by the cool little timing mark on the front. Needless to say I was maybe 1-2 degrees advanced using a new chain according to my tdc readings, but it read about 4 degrees advanced on the damper. That damper is not accurate enough to be accurate to a degree or two, and 4 degrees should be fine.

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1993 190E 2.6 Sportline