I cant remember if im right or not but

the balancer should be 0 and rotor button faceing 1 wire on the Dist.

or does it have to be before 0 of tdc?

another weird problem is I cant tell
if its on tdc Because i have no compression
on #1.
I dont know whats this problem is,but I its not the heads or valves they seem to do their job.
when i did intall the heads back on I did
torque the rocker arms how its said to done. I d to have tear the engine back and start over.

Make the rotor tip point to the #1 plug wire with the balancer set at 6 or 10° before TDC.
I'm not sure what your saying about you did 'torque' the rocker arms. Sounds like you have the rockers too tight

I agree, set the balancer to 10-12 BTDC with the rotor facing #1 post. Install the plu wires, 1,8,4,3,6,5,7,2 and fire it off. If it will not fire and pops through the carb, you are off 180 degrees. to fix this, bump the motor untill you are back at 10-12 BTDC with the rotor facing the rear of the car. Pull the distributor out, and drop it back in facing forward. You should go through your valve lash again if this is the case.

Jon

what do you mean "you torqued the rocker arms down?"