Here's my progress report with more pics. I've got past the stubborn bolts on power steering pump bracket and pulled the lower timing cover off. From what I see, the belt has been rubbing against the belt tensioner arm as well as the harmonic balancer. I turned the crankshaft a couple of times and there doesn't appear to be a warping of the harmonic balancer and I'm kind of puzzled as to why the belt has been tracking so far forward. The groove in the belt appears to have been cut in by the water pump roller as this is the only thing that has a raised edge on it. Could this have been caused by the belt being improperly positioned when it was last changed or was there maybe a spacer that wasn't installed on the tensioner? Definitely looking for suggestions here. This brings me to another question. Where exactly is TDC in the sequence of numbers shown below. I would think it to be the half hash between 1|0 . 0|1, but just want to make sure. I'm using a . for the half-sized hash mark.
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2|0 . 1|0 . 0|1 . 2|0 . 3|0 . 4|0