Hi Temp Paint fail

[Rancho Deluxe]

Hi Barners,
Here's two pictures of the engine we're having so much trouble getting set up. The timing was just very odd and did not respond anything like normal until we set it very much behind (retarded) where the timing gear notch indicated it should go. Then after a short local run here's what the manifold and top exhaust pipe to the muffler looks like. That's a top-grade fine-rated well-applied coat of manifold paint.... We now consider the timing gear to be misaligned and we plan to check it. But we open the matter to any comments from you guys out there. Thanks, Rancho