check out
http://jimwolftechnology.com/w...E.PDF to see how the lobes on the #1 cylinder should line up when TDC (second mark from the left on the crankshaft). I have a KA24DE (92 Nissan 24sx S13) and there is exactly 8 chain links between the round mark on the exhaust sprocket and the round mark on the intake sprocket. I put the yellow chain on the round mark on the exhaust sprocket. You seem to have 8 chain links but I cannot tell where your lobe is from the picture.
Just putting mine back together a second time. Anyways, rotate the crankshaft by hand to get a feel of what the effort is to rotate it is if you decide to adjust the chain. That way after you adjust it, you can rotate it by hand again and it should require the same effort. If it binds (get stuck) then you are hitting a valve and shouldn't force it as you will bend a valve.
My distributor is advanced also but not fully, more like 1/2 of the max.
Richard