OK I'll try again.
Jim,
I don't know if the previous owner had messed with the timing gears, but I suppose I could look to see if there is any appearance of a recent front cover reinstallation. Could an improper timing gear replacement cause the mark to be off?
I still want to know: should the TC mark on the balancer be lined up with the pointer when #1 is at TDC?
When looking at the inside of the dist you aren't allowing for WHEN the spark jumps across the rotor/cap gap. It is impossible for you to simply LOOK in there and see it is incorrect.
If the timing is a cog off your engine won't hardly run at all.. It will barely start and will pop and crack and generally raise hell.
So what i'm saying is everything is good...get out of there.
Now as for the mark on the balancer and the pointer on the block.
With your screwdriver and the slop in the timing chain it would be quite hard to really KNOW what was what..
You need to put a timing light on it and make sure it is running at the advertised idle speed.. then make sure the vac (if any) is disconnected and plugged. Then if it has a computer plug that needs to be unplugged...unplut that thing.. Then the light should be working at the designed advance. At the designed idle speed. If not then give the dist a small twist and get it to where it is advanced to the proper amount.
Big JIm