Sorry to hear your frustrations. Maybe some time away will help you reattack with a clear head.I'm hanging up my hat on this one. Its worse now.
I set the cams at 0TDC. I did what was suggested and used a paint pen to make a new mark on the HB. I tried setting the diz in that position and it was still either at near 12 o'clock or like 10-1030 o'clock like in the pictures I originally posted. I also replaced the spark plugs and rotor since I had the valve cover off.
I tried running it in both positions and it ran like crap.
I set it all back to how it was when I bought it and set the timing to 0TDC. It runs and idles fine but now I have an issue when I'm accelerating that it just cuts out. It almost sounds like the engine has completely shut off. The revs drop all the way down and the engine stops making noise but if you let off the gas and then go back on it it picks right back up like nothing happened. The check engine light comes on to when this happens but goes off as soon as you let off the gas and then go back on the gas.
I think I am just going to take it to a shop and let them figure it out. I got to many other projects on my 92 that this has put me behind on. Unless I get the 92 finished before I can get an appointment at a shop I'm done messing with this and just want it fixed.
Either way I will update this post with what was wrong rather I fix it or a shop does. I am leaning towards HB though.