Timing Retarded

I just got started with my 65 Dart GT, so I've put new plugs and set breaker gap, dwell is 40. Checked timing and it was horribly retarded, well beyond TDC. The most I can advance it is about 2 degrees After TDC at 500 RPM. It runs fair but has no power, can barely get it up to 40Mph.

Distributor off a notch?
Timing chain?