thats kinda what I thought might be happening there with the noise right at the front of the engine and more or less at the timing cover. those cheap chromed timing covers are also prone to busting the lip off if there is any extra pressure applied. just look at the spot welds when you buy a new one to ensure they are solid. if it was me I would install a normal good quality timing gear and chain set and get rid of the existing gear drive. unless you like the noise they make. it is more stuff tucked away in there that may go wrong, not saying it will.
your chance to set up the distributor is right now. the timing marks should line up so you are probably just 180 degrees out. if you pull a valve cover you could see if the rockers are sitting right or if you pull the dist cap the rotor should line up with the appropriate tower for the number one wire. you could probably also see into the lifter area through an oil drain hole near the top of the block and check if the lifters are seated down in the bores like they would be for number one TDC.
-turn the engine over until it is right
-swap out what you are gonna swap or leave it the same, gear wise. ensure the timing marks line up proper and use some loctite on the gear retainer bolts. I would also use some new bolts there that are of the proper grade. bolts with no hash marks on them are usually soft. see the link for a set that comes with a metal lock plate that you bend the tabs over the bolt heads to ensure the bolts stay tight. this set also uses grade 8 bolts
-pull the pan and get the crap outta the pan and check the oil pump pick up at the same time to ensure it is solid, you may wanna pull a bearing cap just to see how that looks and check clearances etc. you will also see if the assembly guy used loctite on the rod bolts that way. the first one to see oil would be the first one to get any crap or contaminants, the last one to see oil would be the one to check for starvation issues. or just pull them all one at a time and see how the whole bottom end looks. it is apart now anyway. some plastigauge will be your cheapest purchase. ensure to use some bearing gaurd or assembly lube after the plastigauge check. write down your results so you know the clearances on each journal. peace of mind goes a long way. ensure to leave the crank sitting at TDC so you can check the timing tab with the new dampener
-clean the gasket surfaces well with some brake cleaner. install a good quality pan and timing gasket set with a new cover and seal. use a little "the right stuff" sealer in the corners where the gasket meets the rear main cap and also at the front corners. not too much so it squeezes out all over the place
-check to ensure the new timing cover timing marks align with the new dampener timing tab now that you know where TDC is.
-install the new dampener with a pull tool then install the proper dampener bolt and washer with some blue loctite
-should be good to go.
below are a few links you may find helpful. the last is a link for a gear drive set up with checks that need to be done on assembly with regards to the timing cover. if re-using the gear set ensure you do this part. also the metal tabs usually need to be bent over the bolt heads and then ensure they also clearance the timing cover. i suggest you read the whole thing first if you are gonna re-use the gears. if installing a standard chain set up check the back side of the existing top gear to ensure the flat thrust bushing is also removed with the gear and is not stuck top the block. if you know the manufacturer of the existing set maybe check online to see what it came with and what, if any, mods may have been done to the block to accept the new gear drive.
https://www.summitracing.com/int/par...-4605/overview
http://www.flowtechinduction.com/arp...olts-gen1-sbc/
http://www.superchevy.com/how-to/051...-installation/
https://speedmaster79.com/support/In...ns_Gear_Drives