Dave, I think you have a miss match between the pointer and the balancer.
Actually, you can put a pointer anywhere you like. That includes the bottom of the engine.
However, the pointer must be in place to setup the timing.
So, if you wish to use that pointer, you will need to place a rotation bolt stop in number 1 plug hole. Rotate to the right, mark the position with the pointer. rotate left and mark the position. Take the total distance and divide it by two and measure the distance in from either mark.
That is TDC. You can either force the ring to the proper location ( a very bad idea ) or you can tape the balancer.
The tape is based off the balancer diameter, although they are sold on a per engine basis. Any will work that matches your balancer diameter.
Tape it and then spray it with clear. Some paints will attack the tape.
I think I have a spare tape for a small block you can have if you wish.
Total time to do this fix is about an hour. I would suggest you take all of the plugs out when doing it.
You probably know all this and I am being redundant, but some may read this and help them.
If you need the tape, let me know.
