Need some assistance, I am changing the timing belt and tensioner on a 1989 Jetta 1.8 8 Valve that I am going to use in my 82 Deisel conversion.  But am unsure that I have the crank and camshaft gears in that correct alignment.

Can some one point me to a good resource, that explains exactly where they need to be?  My Chilton's manual leaves me wondering if I am even close?

Also under the timing belt, the metal on the block is rusting off in layers? Is this common or Dangerous, it doesn't look like it affects any area that has gaskets that require sealing, etc.

Thanks in Advance,

Joe
Omaha