Help understanding my odd timing?!?!

moper's explanation is dead on accurate. I take nothing away from it, but if the balancer has spun, or the mark has been machined off and remarked incorrectly, there's no way in hell to have a reference for timing. Period. Since the balancer is a KNOWN part that's been modified in a really unorthodox way, that would be where I started FIRST, and then proceed with mopers great instructions. Because without a known CORRECTLY marked balancer and timing reference, all the rest is for naught. Sure, you can time an engine without the balance, but setting running engine timing without a correctly marked one is impossible.