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When the crank pulley is aligned with the 0* mark on the lower timing cover, the cam gear should be perfectly aligned with the timing mark on the head.
You have to remove the upper timing cover to check this - there is a hole on the cam gear that will allow you to either feel (with a small allen wrench or similar) or see (with a mirror and a light) a small notch on the head. The notch is located directly towards the "top" of the motor, but when the motor is in the car, it is leaning back 10* or so. Removing the spark plugs will make rotating the motor by hand much easier.
This procedure is illustrated in any repair manual out there (Haynes, Chiltons, OEM BGB, documentation with a new timing belt, etc.) Make sure the timing belt is properly tensioned while you are in there too...
-Charlie
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2003 Impreza WRX Wagon 5spd - 2.2L stroker + other goodies
1989 Camry Alltrac LE 3S-GTE 5spd - SV25/ST205 hybrid
1990 Camry 3S-GTE 5spd - parted out / junked
1990 Camry DX 3S-FE 5spd - The original white90dx; gone but not forgotten
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