My father and I have started rebuilding the ol' worn-out 22re in my '92 Yota using mainly Engnbldr parts. This is my first time rebuilding an engine. We have most of it put together, and are in the home stretch. I just want to make sure we didn't get the timing chain installed incorrectly.

With the crank pulley at 5 degrees BTDC, and the dot on the cam gear just before 12:00 (11:55), we tried to install the distributor.

Setting the rotor to 12:00, the dizzy goes into the head and mates with the cam gear just fine - rotating the rotor counter clockwise to around the 10:00 - 11:00 position. However when installing the cap, the rotor seems to be slightly offset of the #1 pickup inside the cap as you can see in the last picture. This can be adjusted to point directly at the pickup, but this results in maxing the adjustment to one side.

Is there an issue here if any? Is the chain offset?