fixing/adjusting upper timing

[scruf]

Hello,

First time poster here - I'm at the end of replacing my head gasket (forums here were a great help - thanks everyone!)

Anyway, got everything back together and lo and behold it actually started -but- it ran rough, wouldn't rev past 3000 or so, backfired etc.

So, I tried adjusting the timing at the distributor - if I turned it all the way clockwise and started, it ran better, would rev to 4 or 5000 or so, and if I turned it counterclockwise it would just die - got me thinking that I did something wrong with the timing chain

Here's the setup before I took the whole thing apart


And now when I took the valve cover off once again


with my limited knowledge, it looks like I need to shift everything a half link to the right -- does that sound correct? I couldn't get a good shot of the idler sprocket, but it looks like the dimple is in the right position as depicted in
http://www.nicoclub.com/archives/incorr ... chain.html

Thanks in advance for any feedback

[PapaSmurf2k3]

Is the engine at top dead center in those pictures? Really you need to look at the lobes too. They should sort of be pointing between 9 and 10 o clock for intake, and 2 and 3 o clock for exhaust.