can't set distributor timing

LoweredDC4

Jimmy
okay so i just put in my jdm b20. So i tried to set my ignition timing today and no matter how much i move the distributor forward or backwards, the 3 marks on the crank pully doesnt even come close to the mark on the timing cover. So what am i doing wrong? I do have 2 check engine lights on; 1) CEL 65 (02 sensor), and 2). CEL 54 which is the crank fluctuation sensor. I havent done the bypass for that yet but if i do that bypass, will i be able to set my timing correctly? Is that whats causing it not to time correctly?
 
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