1. I set the #1 piston at TDC on the compression stroke prior to removing the cylinder head, distributor, old timing chains and sprockets etc.
2. I installed the new lower crankshaft sprocket and aligned the marks on the chain with the marks on the new idler sprocket.
3. I aligned the marks on the upper cam sprockets with the mark on the idler sprocket and installed the new upper cam chain.
4. Once I put it all back together, I made sure the distributor marks were lined up and pointing towards the #1 tower on the distributor cap etc. However, I can't get it to start? It cranks normally but just wont turn over.

I troubleshoot as follows:

1. I checked the fuel system and its getting fuel.
2. I checked for spark and I'm getting good spark.

Since I can't get it to start, I'm assuming the timing chain may be off somehow? I'm starting to doubt weather or not it was on the compression stroke?

1. Is there a definitive way to determine that the engine is on the compression stroke once the engine's been turned over other than putting my finger over the spark plug hole and feeling the air push out?
2. In addition, how can I know if the valve timing is correct? If I position the cam shafts with the #1 piston lobes pointing straight up, the marks on the timing sprockets and chain don't line up. They only line up when the intake cam lobe is laying on the left side pointing towards the intake manifold and the exhaust cam lobe laying on the right side pointing towards the exhaust manifold?

Please help, I'm dreading having to start over and tear down the front of the engine and realign everything.

I have to raise the engine 3" and lower the front suspension 3" to get the oil pan off so I can disconnect the oil strainer from the front lower timing cover since the oil pump is attached to the inside of the timing cover, not to mention removing the air compressor, alternator and power steering pump to get to the motor mounts! Any suggestions?

Set it to #1 TDC (the way you are doing is fine, but just get the distributor to point to number one will work for this as well)

Turn the motor 360 degrees and get back to TDC - at this point the distributor will be pointing opposite cylinder 1

Now remove the distributor and point it to cylinder number 1

Being 180 out will cause it to not start, and being a tooth off will cause it to run really crappy. That is where I would start before I went ripping apart an engine.

Take off the upper front cover and view the alignment marks to make sure you are correct - also check to make sure you are on compression and the cams aren't timed 180 degrees out.

The picture of the harmonic balancer is showing you ignition timing though.