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Scan tech Rear timing cover problem, water pump mushroom 700 1990

Hello all, I just replaced all three front oil seals and the rear timing cover and have a problem. I have found that there are two marks on each timing sprocket(upper and lower). One is red, the other is a white dot that is center punched. Also the scan tech rear cover...I cannot find an indentation for the lower timing cover to adjust the gear, my old one melted so no comparison there but I did put the gear as close to the position as shown in the photos here but when checked with a timing light was way off. I cannot get her started so any advice would be appreciated. I also had a problem with the mushroom on the top of the water pump leaking profusely after assembly, I didn't use any sealing compound, any tricks to keep this from leaking?
Thanks! Noel Smith, Morrow Ohio
1990 740 242k
1988 245DL 144k







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