Look here:
http://www.babcox.com/editorial/ar/ar119838.htm
for a discussion of the differences between the 84 and earlier engines and the 85 and later. The earlier engines had greater deck height, which I assume is the distance between the crank center line and the top of the block. Also, it appears that there are differences in the mounting hole spacing for the chain guides between the blocks. The set that you bought from NAPA is for the later blocks and the chain that was installed is for the earlier. Comparing the guides, new to old, may give you a clue as to whether you have an 84 or earlier block or whether someone installed the wrong chain. Also, the timing covers are different and the oil pumps are different.
I haven't been looking for earlier length timing sets as I don't have one of those engines. But, while traveling along the innertubes super highway I recall seeing just one vendor advertising the earlier style timing set: John's foreign engines
http://22re.com/
So, figure out what you've got and get the correct set. Worse comes to worst, you might measure the timing cover on your engine and go to NAPA and measure a timing cover for the 87 engine. THe earlier timing cover should be about 1/4 shorter.
Edit: I just checked engnbldr.com and they have the parts for the earlier engines as well. All reports are that they're very helpful and I'd bet an email to them would get you the dimensions of the timing covers for the two different engines. Good luck with it,