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#1 cylinder must be at TDC. There is no such thing as a compression/exhaust stroke if you are talking only about the pistons. Intake/exhaust timing is determined by the camshaft. Just line up the timing mark on the harmonic balancer to exactly zero, and you're set.
For ignition timing, take a look at the sticker under the hood, it tells you how to adjust the timing. You connect terminals TE1 and E1 of the data connector, and move the distributor to get the correct timing, 10 degrees in your case. So yes the timing does need to be adjusted.
edit- if you do not disturb the distributor it does not need to be adjusted, but it would not hurt to check it after doing the timing belt.
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2000 Lexus ES300 Millenium Edition 1MZ-FE 64,000 Km
1993 Camry V6 LE 3VZ-FE 164,000 Km SOLD but still in the family
1990 Camry LE 2VZ-FE 202,000 Km
1987 Camry LE 3S-FE 435,000 Km
1971 Corolla 2-door Coupe 2T-C 260,000 miles
Last edited by 71Corolla; 05-19-2011 at 08:53 PM.
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