318 pulley alignment

I second that the damper is not in all the way. If one looks closely at the flange you can see that it is flared to match the countour of the block. Just by sight it looks like it should go in another 1/2 or so. That should align the inner pulley with the pump and alternator. I just checked my 340 and that flared flange comes to about a 1/4 to 3/8 inch from the face of the block. So the flange is actually over the top of where on your photo we see the block curving down. Actually I should say where we see the timing cover curve.