When setting the valve timing, the mark on the cam sprocket must be set to the ATDC side, there is no clearance for the intake valves when the timing is set BTDC and they will hit the pistons, Moving the chain on the sprocket moves the timing in increments of 18deg at the crankshaft, most likely the cylinder head has been resurfaced and is affecting the timing, The head being thinner will cause the timing to be slower, and so will wear on the crankshaft sprocket. Even if the timing mark comes closer to lining up in the BTDC position, It must be set to the AFTER TDC side, and if necessary use an offset key to advance the timing.
After assembling the cam sprocket, leave the rocker arms out and rotate the motor (using the crank shaft pulley bolt) to the right until the marks on the cam tower and the timing washer line up. The marks on the crank shaft MUST be on the ATDC side, if it is more than 18deg after, advance the cam timing one tooth forward, Most of these cars the cam timing will line up at about 4-8 deg ATDC and will run just fine set there.
Al