Timing Belt TDC marks off

[1981323i]

This forum is one of the best tools. I hope you can help me. I just picked up a 1981 E21 Euro 323i with a 1984 rebuilt M20 (325i head- cam 268 280*). It needed a water pump so I decided to replace the timing belt tensioner while I was in there. Everything was going great until I got to the part I needed to line up the TDC marks. The cam marks were clear to see, when it came to the crank I looked for TDC marks ever step I took. The crankshaft end has a harmonic balancer that has the marks on it, there is a line on the lower timing belt cover that is about 1/2” away from the TDC mark. (When the cam is set to TDC) After the Balancer was off and the lower timing belt cover removed there was a line on the crankshaft sprocket and a V cut on the belt protector. This to was about 1/2” off the mark in the same direction. I drove the car and the engine appeared to run normal. I am sure the belt did not slip.
My questions:
1- Being a rebuild could this be possible and things are lined up inside?
2- when my manual states to turn the crankshaft clockwise, is that facing the engine?
3- I was told by the previous owner he thought the engine was Non-interference engine (in his opinion) could this be possible, Hardy & Beck built it.


Here are the pictures in the process; do they look normal to you?

http://webpages.charter.net/mysigns/Bimmer/cam.jpg


Here is the cam, the arrow on the pulley and the scribe line on the headline up. (New timing belt on)

http://webpages.charter.net/mysigns/Bimmer/Crank2.jpg

There's a TDC mark on the balancer, and a raised line about 1/2" (next to the clip) Hard to see!

http://webpages.charter.net/mysigns/Bimmer/Crank.jpg

Once the Balancer was off and the cam marks still on TDC.
This is how it was before removing the timing belt. I left it this way because it was running fine.

Every thing is back together; I have not started it until I confident it is correct.