80/90 timing marks question

[EBavely]

Hello all...

I know this one's not a quattro question, but I'm hoping someone out there
has the Bentley for the car and can confirm a few things...

I recently picked up a 1988 Audi 80 (FWD) with the 2.0 liter four cylinder
engine (3A motor).  This is the same engine that they put in the automatic
90 for a few years... Anyway, the car needed a head (cracked), timing belt,
etc and now that it's all back together and running again I'd like to verify
the timing settings.

Can someone tell me what the Bentley says about the relationship of the
timing marks on the flywheel, cam sprocket and mark on the distributor?
There is a zero and a line on the flywheel that are visible from the oblong
hole in the bellhousing. This is where I'm not clear...

I assumed that the dot on the cam gear lines up with the front edge (plug
side) of the valve cover (a la VW), that the distributor rotor should be
pointing at the #1 mark on the distributor and that the zero on the flywheel
should be lined up with the casting mark that sits halfway up inside the
bellhousing hole.

I don't have a manual for this car and the car does not run like it should.
It's sluggish off idle, down on power and will not pull in gear past
4000-4500 rpm.  I also noticed last night that it backfires (a popping noise
really) ever so slightly when I let off throttle in first gear.  I started
looking at the timing and thought that maybe I was using the wrong marks.
Should I be using the line instead of the zero on the flywheel?

Can anyone advise?  I'm hoping I "missed the mark" and that this will clear
up this problem.

Other helpful info...compression checks out fine, spark is strong, exhaust
seems to be free and injector spray patterns appear healthy.  I changed
knock sensors and that didn't seem to help.

Thanks in advance...

Elliott Bavely

86 4000CS Quattro
88 80 Fwd
83 GTI FSP Racey car
83 GTI 16V
90 VW Cabriolet