Timing help on m20

[1981323i]

This forum is one of the best tools. I hope you can help me. I just picked up a 1981 E21 Euro 323i with a 1984 rebuilt M20 (325i head- cam 268 280*). It needed a water pump so I decided to replace the timing belt tensioner while I was in there. Everything was going great until I got to the part I needed to line up the TDC marks. The cam marks were clear to see, when it came to the crank I looked for TDC marks ever step I took. The crankshaft end has a harmonic balancer that has the marks on it, there is a line on the lower timing belt cover that is about 1/2” away from the TDC mark. (When the cam is set to TDC) After the Balancer was off and the lower timing belt cover removed there was a line on the crankshaft sprocket and a V cut on the belt protector. This to was about 1/2” off the mark in the same direction. I drove the car and the engine appeared to run normal. I am sure the belt did not slip.
My questions:
1- Being a rebuild could this be possible and things are lined up inside?
2- when my manual states to turn the crankshaft clockwise, is that facing the engine?
3- I was told by the previous owner he thought the engine was Non-interference engine (in his opinion) could this be possible, Hardy & Beck built it.


Here are the pictures in the process; do they look normal to you?

http://webpages.charter.net/mysigns/Bimmer/cam.jpg


Here is the cam, the arrow on the pulley and the scribe line on the headline up. (New timing belt on)

http://webpages.charter.net/mysigns/Bimmer/Crank2.jpg

There's a TDC mark on the balancer, and a raised line about 1/2" (next to the clip) Hard to see!

http://webpages.charter.net/mysigns/Bimmer/Crank.jpg

Once the Balancer was off and the cam marks still on TDC.
This is how it was before removing the timing belt. I left it this way because it was running fine.
I could hear a little ticking but thought it was just the rocker arms needing adjustment.
Every thing is back together; I have not started it yet until I confident it is correct.

What if I pull the spark plug in the #1 piston and try to see if it's at the highest point when the cam is on the TDC marks. Not sure how to check the cam other then the TDC marks. Do you know if it is possible when installing ether the crank or the cam these could be lined up improperly. I think the crankshaft end has a flat spot to line up with the belt gear. Any thought
Thanks For Your Help!