Cam Timing Alignment Problem (see Pic)

[Timmmy]

OK,

Followig on from a thread a little while ago, I am convinced I have my cam
timing close now.

With the flywheel mark algned in the bellhousing, and with a dial gauge
down cyl 1 plug hole to confirm the flywheel mark, I am at tdc on cyl 1!
So I align the dot on the back of the new adjustable cam gear after
transfering it from the original Audi cam gear (the dot sits in a valley,
not on a peak of a tooth)

I attempt to put the new belt on, but I cant! I either have to advance or
retard the cam by half a tooth to get the belt to line up. (assuming
tension on the back of the belt from the LH tangent of the cam gear to the
LH tangent of the crank - so not on the tensioner side.)

See the image here to help explain it

http://thepointoforgasm.com/gallery/Audi-5KTQS/alw

So what is the correct alignment, half up or half tooth down, or am i
confused as usual?

Timmy