Another noob with a timing question

[Valanon6]

First off this forum kicks much ass and has already helped me out a lot.

Well, I just bought a 86 4runner about two weeks ago for 300 bucks with a blown head gasket and 125000miles on the clock. I just went through and replaced the head gasket and replaced the chain and guides cuz the old one was gone and had already started to eat into the timing cover but luckily it wasnt all the way through yet .

Well here's my question, I got all done and replaced all the disposable stuff (ie: cap, rotor, wires, etc.). Afterwards I hit it with a timing light to make sure I had it timed right and the mark is about 30 degrees advanced. that and it seems to retard instead of advance with revs. If I put the timing to like 5 degrees it runs like butt and tries to die. I know the cam timing is right and yes I am sure I have the #1 wire. Any ideas would be appreciated!

P.S. these things do turn clockwise from the front right?

 

[fourwd1]

2 possibilities are the chain is off a tooth, or the distributor is off a tooth.

 

[Valanon6]

When I had the cover off I made sure that the valve timing was right tooth for tooth and if the distributer was off a tooth my truck would not run right and would have really bad detonation right? That and it would just be a matter of advancing or retard it right? Right now, even though my marks are wrong I timed it by ear and it runs and revs alright.