I am writing this to help others. I changed my head gaskets and had a hard time getting the timing right. The fsm says to set the flywheel to the 0 degree mark. Drivers cam pointing down and out while the passenger cam is up and out. That didnt work for me. I tried lining it up with the three lines and it still didnt work. What did work was setting the flywheel to the 20 degree mark then putting the distributor in pointing to the #1 cylinder post. What has everyone else done to get it to work?

The description with the one cam pulley up one down, is the checking position, to verify you got the belt on correctly, not how to install or tension them.

The 3 ||| marks is where you set the crank to install a belt, with the cam you are doing with it's mark up.  Then turn the crank one full revolution, and repeat for the second timing belt.

It is not normally necessary to touch the distributor when replacing the timing belts.  Although, removing it for head gaskets makes sense.  I usually mark where the rotor is pointing before I remove it, or check my 2nd EA82 car when re inserting it.

I just followed the FSM for the distributor timing the last time I did my head gaskets and pulled the distributor off the driver's camshaft case. It has a section about setting the distributor to the camshaft, (Flywheel to 20 degrees  BTDC and point the distributor to #1) and then it has another set of steps for getting the belts on and timed correctly where you use the III timing marks.

Sometimes I wonder if I'd really have as much fun as I do working on my GL if I didn't have the full Factory Service Manuals to save me from my own mechanical inexperience and ineptitude... probably not.

 

Yes, FSM are the best.  I consider them part of buying a car.