In reading your write up I was unable to ascertain whether you corrected the timing or not? Have you? How is the car running now? If it is running good - relatively smooth idle, no smoke, starts easily, etc... then I would leave it alone.

I have attached a pic of the #1 piston out of my 300D where the car was run with one tooth off on the chain (19 degrees). This engine had been run at 100+ mph with the timing off. The #3 piston looked the worst. This was the only visible damage and I will eventually get around to rebuilding this engine. My machine shop is telling me to replace the exhaust valves too. For right now I just picked another engine up off of ebay.

Disregard the oil on the top of the piston. I had spilled a little on it when I pulled the head off. The only damage is where the exh valve hit the piston.

__________________
Jim