OK, it's possible that the balancer has spun and giving you false ignition timing readings. Now that you know the valve timing is correct, remove the cam sprocket cover on the driver side, turn the engine to align the mark on the cam sprocket with the mark on the rear cam cover. Look at the crankshaft balancer timing mark.... if it's not on zero you have a spun balancer hub and it should be replaced.

As for the ignition wires, did you notice that the cap is marked? As you look at the engine from the front, the 3 wires on the towers to the passenger side go to cylinders 1-3-5 and the 3 on the driver side go to cylinders 2-4-6.... like this:
[Linked Image]

Frank


'89 [color:"white"]G-Raider[color:"white"] [color:"black"]Supercharged 3.0L, MegaSquirt 2, lockup A/T, 2.5" exhaust, 172k, Cibie H4s/Oscar SCs, Hella Micro DE fogs, Cobra CB, Superwinch hubs, LSD rear/Aussie Locker front, Bilsteins, Lifeline AGM, Rust-Oleum