Valve timing and Caliper questions

[jesse]

I've got an 86 4KQ and i'm not sure that the valve timing is correct after i did the timing belt.  I lined the notch on the cam gear up with the lip on the cam cover and set the number one piston to physical TDC.  When i was reading the manual it talks about TDC and also mentions a mark on the lower timing belt cover that should be lined up with the notch on the crank pulley.  I am a bit confused as to which is correct.  If I line the marks up it would apppear that the timing would be very retarded.  If it is correct then I have had the timing very advanced for a few thousand miles.... which is correct?  Could I have caused any damage if i got it wrong? Are there any listers with experience tuning the valve timing or is stock the best setting for performance?

Lastly, I can get reman calipers with carriers for about $80 at Autozone or i can get a rebuild kit from AUDI for $30.  I don't know of any pitfalls involved with either option... any $.02 from the list?

TYIA
Jesse Erickson
Lake City, Minnesota
'86 4kq