Cam timing expert help needed!

[Endust]

All,
Since I have done everything else I could think of to fix my smokey shaky 240D I have turned to timing and may have found something important. Using the not super accurate cam tower marks I show a stretch of 25 degrees ATDC. This tells me I am 1 tooth off. When I put the balancer at TDC the notch on the cam looks to be about 1 tooth , turning the cam CLOCKWISE from the front, away from lining up correctly. My injection pump is pulled to retard as far as the sloted holes will allow. The car starts ok, idles with a terrible shake in gear and smokes black/grey when warm in gear. Runs better than my 300D on the highway and has great pickup. Motor has 130k confimed on it. Good compression, motor mounts, yadda yadda. My question for the cam experts out there is this: Would the motor run, with no interference, with the cam 1 tooth late? Am I reading the signs correctly that I am in fact 1 tooth late? Can I spin the cam 1 tooth CW and fix my woes?Help! Its apart right now waiting for a gurus knowledgeable touch!