The use of an impact had nothing to do with this problem. If the bolthole was too short, or the bolt too long, the impact did not cause the problem. Someone else wrote something earlier claiming that they installed the dampener and bolt, and the washer was "free." This indicates to me that possibly some cranks are not tapped deep enough.
I know on the BB engines, at some point there was a change in the cam drive----is it possible that some folks are getting thinner sprockets than original?
I agree, the problem wasn't really the impact wrench, the problem was either the crank not being tapped deep enough or the bolt being too long. A strange issue though, considering it was the same bolt, washer, crank, and damper that had been on there before. The PO did change the timing chain, so perhaps the issue originated from there. It's definitely something worth checking BEFORE you get out the impact wrench.
BUT, had I been tightening it properly with a torque wrench, I doubt I'd have been able to roll the thread over so completely without noticing.
And I do, in fact, have more than one eye and half sense. But crap happens, and I doubt even StrokerScamp is immune from that.