Timing chain? Distrubtor?

[I Am Chris]

Okay so I have been having misfire issues like crazy to I busted out the timing light today...

Well it turns out that my timing is so messed up its not even funny. For starters I turned the motor over to TDC and pulled the distributor cap and it shows the cam positioned on plug 3. So when I marked the timing notches on the pulley, started the car and all that fun stuff with disconnecting the TPS and what not I started to check the timing. Well my timing marks are not visible near the timing pin and instead I found them with the timing light at the top or the pulley facing the top of the block. So I am obviously guessing something is way off. Its a motor from a junkyard so I can not say much about it but it looks like newer cams inside of it.

My guess right now is the timing chain is off, or possibly the distributor is not placed in correctly. Would I be safe with pulling the distributor and rotating it and placing it back in or am I looking into a tear down to check my chain marks?