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It sounds like you are correct about the notches in the pulley. You could stick a long skinny screwdriver in the #1 spark plug hole to feel the piston position while turning the crank CW back up to the "0" (TDC) mark. This is not a very exacting method but it will tell you if you are in the ballpark. If it looks to be very close then you "probably" have the correct mark identified on the pulley. Did you not make note of the timing marks on the crank pulley and the cam sprocket before you pulled the belt loose?
"...I am confident that the camshaft is at TDC as evident from removing the spark plug and checking for compression with my fingers..peeping thru the oil cap opening on the valve cover and noting the positions of the no , one and two lobes..."
This is not at all an exacting way to tell if the cam is at TDC. You could be quite a few degrees off of TDC and both cam lobes will still show closed valves. Instead, make sure the timing mark on the sprocket aligns with the mark that is molded into the inside of the rear belt cover. If you are very tall, you need to bend over and peer back into the rear cover, looking just over the top of the sprocket. Don't mistakenly use the little circle that is sometimes molded into the front lip of the rear cover, or you will end up with the cam a couple teeth out of time. Go ahead and ask me how I know this....
Here is a link to a good image of the cam timing marks:
http://www.brickboard.com/FAQ/700-900/B230FTimingBeltAlignment.htm
Once you get it all aligned and the belt is back on and tensioned, rotate the crank two complete revolutions in the direction the engine runs and make sure both the crank "0" mark and the cam timing mark come into alignment at the same time. Ignore all the stupid little lines that are painted on the belt.
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