misalligned timing belt

[John Larson]

You asked "

Any comments will be greatly appreciated. 
Anyone machined WP's gasket groove for thicker gasket?  How much it can 
cost in a machine shop?   The surface on block is pitted and I have to 
use hight temp silicon gasket goop.  Last time it held 2 years only."

I can't address the alignment issue today, but there's a simple, if a 
bit time consuming, solution for the block erosion behind the water 
pump.  After getting it REALLY clean, apply a coat of JB Weld to the 
pitted area (use the regular, not the fast drying type), let it cure for 
24 hours, and carefully file it flat.  Clean it off well, and apply 
another layer if necessary.  It works.  BMW authorizes this technique 
for pitted cylinder heads, and I do it to Vanagon heads all the time.  
RTV, BTW, is a really poor way to fix ANY kind of leak.  Be sure to use 
the correct phosphate free coolant after the repairs.  Good luck, John