Great photo that clearly shows the base static injector pump timing off by nearly one tooth. As v8volvo stated previously, you need to find out where that slippage occurred. Next thing I would want to do is to (while you have the engine at TDC) is to verify the camshaft timing. Do you know how? Important because with a tight interference engine, piston/valve collision, etc. is a real possibility you want to avoid.
If the camshaft timing is good, you might get away with simply (
) retiming the IP.
Excessive blowby out of the oil filler cap hole may indicate bad piston rings or worse. Problem is, it's hard to quantify "excessive" remotely.