My father and I have started rebuilding my ol' worn-out 22re from my 1992 pickup. It is my first time rebuilding an engine. We have most of it put together, I just want to make sure we didn't install the timing chain incorrectly.

With the crank pulley at 5 degrees BTDC, and the cam gear dot at roughly the 11:55 position, we tried to install the distributor.

Rotating 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 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 by turning the dizzy but doing so results in maxing the adjustment to one side.

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