After thinking about it more I decided to look at the mechanical rather than electrical aspects of the problem.
Haven't done a timing belt before but thought I would at least look to see if there is something suspect with the Cam timing.
Here is what I found...
When I pulled off the harmonic balancer here is what I found - The inner seal is perished and broken away.

Then if you look closely you can see bits of rubber everywhere in the bottom of the timing case and 'crumbs' all over


I suspect that this rubber has done the a round or two up to the top end and is a perfect size to fit in the timing belt teeth.

Then checking the Intake cam timings it looks like it is now a tooth retarded. Note the crankshaft is aligned with the timing mark above - From what I understand anyway.


And the exhaust cam two teeth retarded. I have marked the tooth with black texta but you can also make out the mark.


I will sleep on it now and see what anyone else thinks before I go and readjust the cams. I need a new harmonic balancer anyway.
Any other opinions from what you guys see?
Thanks for all your help to date...






