The only sure way to know it's back against the timing gear is to do some measuring before you start driving the balancer on and check it once it stops moving. The 1" measurement from the front of the crank snout to the front of the balancer sounds about right. Check to see how well the pulley on the balancer aligns with the water pump- - - -there shouldn't be a noticeable angle to the belt, front to rear. An 8# hammer is plenty of force, so you should be good to go. If the oil pan isn't on yet you might be able to use a mirror to see if the balancer snout is touching the timing gear.
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
Cringe and wail in fear, Eloi- - - - -we Morlocks are on the hunt!
There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. - Ernest Hemingway
Love your enemies and drive 'em nuts!