Long story short, got the head reco'd & am putting it all back together. Was running yesterday but pretty rough. Then the water pump decided to start leaking (has been fine until I pulled the motor apart

This is what I did:
1) Undo all the valve adjusting nuts
2) Line up mark on camshaft pulley as per manual (it's a hole with a little verticle dash above and below it, line that up with the centre mark on the inside belt cover)
3) Set crank to TDC. There is a mark on the pulley, line that up at the top. I noticed that I could see the "T" marked on the flywheel in the timing window too.
4) Fit timing belt
6) Remove dizzy & reinstall so that the rotor points to where the passenger side cap clip clips onto
5) Adjust valve clearances on 3 & 4 inlet, 2 & 4 exhaust.
6) Rotate crank 180 deg., adjust valve clearances on 1 & 2 inlet, 1 & 3 exhaust
As far as I can tell that's how the manual is telling me to do it, and i'm getting farting out the exhaust. What the heck am I doing wrong???