[PONTIAC DUDE]

FWIW:
First off................ I would use 6 on the cam & 12 on the crank to align. You can easily get one tooth off over that distance of observation. When the dots are lined up on the timing gears then you are on #6, not #1 for firing.

You need to bring it up on #1: Watch the intake valve open and close, as it is closing, then bump it till the balancer line and mark on the cover line up on zero.

If you are using the factory nuts that bottom out at 22 ft/lbs then..............after you are on #1
loosen the nuts on both intake and exhaust for that cylinder. Then tighten down the nut untill you feel no play in the pushrod to rocker. Now tighten the nut to 22 ft/lbs and watch the # of turns it take to achieve this. If it is over 1 1/2 turns then you might have issues with the valve wanting to stay open. I preferr no more then one turn. Most have a screw-in studs, but Some heads don't have the ability to replace the studs without pulling the press-in one out. You then can go to a lock nut on the stud to achieve this. Small block Chevy 3/8" style. Also check to see where the rocker tip is riding on the valve tip to make sure the pushrod isn't too long with this aftermarket cam/lifter install. This will affect the preload.

If you have the right pre-load then I would check as you possibly used the wrong marks on the bottom gear to time your cam.
......Have seen & answered this a million times......
There are Two Dots for alignment on the bottom gear. One for the crankshaft keyway and one on the tooth to align with the cam gear.