timing

I have a 1967 firebird w/ 326 engine recently rebuilt. The cam and lifters where not changed because the engine builder said they where ok. They where not!!!.Cam was a race cam and 3 bad lifters. I have installed a stock cam, lifters and pushrods as well as rockers. I also changed out the roller rocker studs and replaced with positive stop studs. That didnt work for setting the valves. anyway as you can tell there are some problems. Now I have gone back to the polylock type studs that where in it and have set the valve lash to 0 with a half turn. Here is my question I had to remove the timing chain to install the new cam and after several trys I am unable to get the timing correct. Yes I lined up the timing marks dot to dot on #1 compression and reset the distributor to #1 and everytime I try to start it is out of time. When I remove the # 1 plug and rotate the engine to compression the dots are not aligned. So I reset the deal and turned the cam with the dist.. out to realign the dots and that didnt work. What am I doing wrong and how the hell do you set the timing from scratch... HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!