Looking for an answer to a long winded question.

Could a timing issue cause my XR3i Mfi to have trouble starting and also run like crap, idling all over the place and massively lack in power?

I have had these issues with the car since a I bought it about 4 weeks ago and I have been gradually going through the "obvious" things to solve the problem and I am trying to rule out as much as I can before I take it to the garage to see i they can solve it.
It takes several goes to get it to start usually while pumping the accelerator.
Since getting the car i have changed the cold start valve (with which i presume is a working one), I have changed the starter motor for a new diesel one, I have also change spark plugs. The dizzy cap, rotary arm and HT leads were changed just before I bought it.
I have also done a full service and while changing the fuel filter i checked fuel was coming in and out of the new one and that fuel was present at each point of the fuel distributor (under the bolts for each pipe)
The fuel pump primes when starting and fuel is definitely coming through to the point of fuel filter.
Now for the first time it has broken down on me when it started bunny hopping down the road.

The reason I ask if it is a timing issue is because I have just tried checking the timing (thanks to my Haynes manual) and to be honest I've never done this before so I will admit i don't quite know what im doing.
But I have aligned the bottom crankshaft pulley to the notch indicating TDC and to my understanding the top camshaft sprocket arrow mark should then also pointing upward, right??
well it isn't, it is pointing down, is this correct?

Any help is much appreciated (sorry or the essay!)