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Timing chain skipped several teeth (320kmi E420)

Same position after two complete turns. But I didn’t have the crank torqued yet. Not sure if that matters so that’s why was wondering about the woodruff key.
 
Same position after two complete turns. But I didn’t have the crank torqued yet. Not sure if that matters so that’s why was wondering about the woodruff key.
The Woodruff key should be fine, and it shouldn't matter if the 27mm isn't torqued.

Rotate the engine again, and this time as you near 45° BTDC, turn 1° at a time (or less) until the driver exhaust cam pins. Read the number off the balancer (may be low 40's, or high 30's, BTDC). Remove the pin, try pinning the driver intake cam next. If the crank must rotate for the intake cam to pin, note that crank number, etc. Repeat for passenger intake, and finally passenger exhaust. You want to find out how many degrees off each cam is. Normally it should be close to zero (44-45°) at crank, and with a new chain & rails, all 4 cams will usually pin at the same time.

The other thing to check, which is much more difficult, is if the balancer is reading accurately. This requires getting a dial gauge on the top of the #1 piston as it reaches TDC and verifying the balancer reads 0°. First measure the degrees at which each cam pins.

:detective:
 
Looks like each cam was off exactly one tooth. Once I moved all four cams one tooth the driver exhaust cam pinned at at about 43 deg. Seems the others are all very close to this. I think I’m good now. Thanks. Do you recommend blue locktite for cam sprocket bolts? Those things are tiny.
 
That is great news! I all four pin at ~43° you are set to go. 😁

I've never used threadlock on the cam sprocket bolts. Be careful when torqueing, the FSM data isn't very clear. The 3 bolts with washer should be 18Nm with zero angle of rotation. The "2nd version collar bolt" is used on later .98x engines and will not physically fit on a .97x engine/sprocket. Ignore the specs for 2nd version.

I do put a small amount of blue threadlock on the single bolt for the ignition rotor bracket, and 3 rotor bolts, after having those back out & destroy a distributor.
 
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