Ok, there we go ...
For a correct ignition timing certain details have to be fulfilled ... I am sorry I have not found better photos yet, but I try to describe it a little better.
The piston has to be in top dead centre (TDC) position AND
Both valves have to be closed AND
the distributor rotor has to point in the direction of the cable to the right spark plug
AT THE SAME TIME !!
In your photos showing the camshaft pulley the little arrow is (as you have written) not in the correct position. This could only have the following reasons:
- The crankshaft is not in the right position OR
- The timing belt is not installed correctly, damaged or the wrong type.
First step: Turn the engine with a ring spanner or ratched clockwise on the crankshaft pulley until this pulley is in the TDC position. If you look at the front of your engine the tdc mark on the crankshaft pulley is the leftmost mark on the rim of the inner pulley.
Here is the index on the engine block for the correct TDC position of your crankshaft.
Would maybe a workshop manual in English help?
Then, if the crankshaft sits correctly, check the camshaft pulley again. Where is the little arrow now?
I think you have the correct type of timing belt because the engine once used to work correctly until it suddenly failed.
So please check first if it is possible to turn the engine until the crankshaft pulley is on its TDC mark and at the same time the camshaft pulley arrow is exactly on its mark on the front of the cylinder head then.
Afterwards we will take care of your dizzy ...