The OP needs to find the timing mark in the hole of the front of the bell housing where the needle is. One cannot put the flywheel on the crankshaft in the wrong position. It only goes on one way.
My wild guess is that the timing mark (BB) is covered with grime, making it unreadable when the #1 piston is at top dead center.
Until this timing mark location issue is cleared up, no one will be able to "solve" the OP's mystery.
