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Timing marks right, distributor off a bit..& no pwr, backfires.. 700

I've had this problem for a few months, and thought quite a few times that it was solved, with some insights from Brickboard folks. This car (89 B230F automatic non-turbo wagon with about 315,000 miles on it) ran fine, 29 mpg, until last year, the mileage dropped gradually to 23-24, so I replaced the plugs,wires,dist. cap&rotor, timing belt, and fuel pumps. Then one day it died and wouldn't start. I changed every sensor, or checked them per the FAQ and found them ok. Well, then it would start, but only after a lot of tries, and had no power. I've checked the timing marks repeatedly, since it acts like it's badly out of time. So, today, a young trained mechanic was overseeing the work, I again removed the fan, timing cover, etc., and the marks are right where they should be, but the distributor is a tooth or two off, and on removing the valve cover, noticed that the cam lobes for the front cylinder are not even close to even, which I have heard they should be - that they should both be pointing upward. One is and one is horizontal.

What is this situation caused by? IS there a pin broken or missing, or something? And how can it just get a tooth or two's distance behind?






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