A picture can at times be deceiving. Your marks on the cam look to be way off but the angle at which the picture was taken can add deception. I have run into this many times when installing a cam to where it will be off one way so I will try to move the cam in line but it will be off the opposite way by the same amount. In these cases the cam cannot be centered so you end up a half tooth advanced or a half tooth retarded. In this case of only a half tooth off you will want to err to the advanced side. The reason for this is simple, since these engines are masses produced many times tdc is close and not exact. The only way to find true tdc is with a degree wheel and piston stop. I will say 80% of these engines are 1/2-1 degrees off true tdc from the factory. Being off 1/2 tooth as described earlier is no big deal. What concerns me is as you described sounds like a ping which is left alone will eventually burn valves and melt the piston. If you would like you can give me a call 662-301-1563 and we can try to figure this out.
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