I'm in the same boat as you mate, I can retard my timing so it barly eks out at 10 *btdc but that's the max. I think I may be 1 tooth off as well. (or my Cam and Crank gears aren't aligned, like it jumped a tooth when my guide broke)
From what I gather if it's 1 tooth off then the crank markings aren't going to help you since the CAM gear isn't lined up correctly with the crank (right?) so now I'm lookin at pulling that damn cover off for a 3rd time and checking the CAM gear and make sure it's lined up to the crank. (Sigh)
Another thing to do is remove the oil pump, turn the spindle 1/8th of a turn, reinstall it and the distributor and try and get it to idle/run smooth from there. (trial and error)
Or can we put the engine to TDC (crank marks) take the Valve cover off and somehow align the CAM markings correctly (trying to avoid taking that Timing cover off again).. How would u get slack in the chain to do that? I have the alignment marks in my book, so I can see if it's right or not. I figured since the guide broke and the timing chain was fine it didn't skip any teeth. But now that I can't get it running correctly the CAM gear must be out of alignment.
Because right now when it's running it don't idle too well, diesels like a mofo and bogs under power.