[mr0077]

I think what Jim was saying was that if the timing marks are right on when #1 is @ TDC the damper is okay, whether it was checked at TDC on compression or exhaust.
Dan, this is pretty basic, but could you be checking timing based on the "rong" plug wire? Do you have an MSD ignition, and if so, are you using an electronic (dial-back type) timing gun? MSD's are notorious for giving bad readings with some (most?) brands of dial-back lights...