Strange timing issue - '68 318
You can get a good idea of how sloppy the chain is simply by putting a socket on the front crank bolt, pull the dist. cap, and turn the engine a small amount until the rotor "just doesn't" start to turn. This is outlined in the shop manual, and by the way do you have one?
There's some free factory shop manuals you can download, here's a 69
[ame]http://www.abodyjoe.com/pictures/Misc.%20car%20info/69%20dodge%20service%20manual.pdf[/ame]