Finding TDC on the marks on the damper is different that using a positive stop to find TRUE TDC. And I only threw that tidbit in because you want your point of reference--TDC, in this case--to be accurate, in order that your conclusions about the problem will also be accurate. If TDC on your damper is 20 degrees off from true TDC, using the damper-indicated TDC mark for a reference point will ALWAYS result in inaccurate results.
And most of us know that, at TDC, BOTH the intake and exhaust valves for that cylinder should be closed. ANY other outcome is evidence that the engine is out of time [cam timing, as opposed to ignition timing]. While radical cams that cause "rumpy-rump" idling will have more overlap than a stock cam, by TDC even the most radical cam should have both valves closed.
As far as using a dial indicator and a degree wheel to determine whether the intake valve is opening where it should, unless you have the manufacturers' spec for that particular camshaft, you're only guessing. Even if the engine is "stock," the 289 hi-po [271 HP] engine used a different cam than the standard 289...so without knowing exactly what cam is in the engine, you're just urinating in the wind.
And using a degree wheel and a dial indicator is basically useless, if the timing chain and gears are suspect...primarily because the results may not be repeatable on a consistent basis. Sounds like you've read a HOT ROD or CAR CRAFT magazine sometime in your life, but only vaguely understood the subject matter.
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