"The notch marks are align with cover #3. The balancer is at 0. The crown of the piston is at top, but the cam lobe is not visible in the oil filler neck"
The only thing that would cause this (as you described) would be someone putting the cam gears on the cams the wrong way. Have the gears been off the cams?
drmmr15-
This is where the cam sensor should be pointing with the engine at TDC and with the ignition timing set to 10 degrees BTDC. This is NOT how the sensor goes in as it turns as it meshes with the exhaust cam's cam sensor gear.
"If you run out of adjustment then pull it out and rotate it back or forward and try starting it up. You should be able to get it running. If it is backfiring and popping then it is about 180 degrees out so pull the cam postioning sensor, rotate it 180 and try it again"
Incorrect. If you take a distributor or cam sensor out, you must set the engine to TDC before you put it back in. You don't go pulling it out, turning it and sticking it back in.