RH,
� You are describing the exact same issue I was having.
� You have to pull the oil pump and move its gear a tooth.
Which I must add, is a real pain in the rump on a fully assembled Willys.� I ended up pulling the exhaust pipe off the manifold.� This gave me a little more room, but it was still tight.�
I will add that once I was able to time the engine correctly, it ran like a fresh rebuild.
Tim