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So if i set the timing roughly, ie just line up the gears and marks by eye, is that ok? How many degrees of cam rotation leeway is there before valve contact.
Yes, that's fine. Center the gears on the cams, get the belt on correctly (i.e. marks line up after tensioning) and you should be within a couple of degrees. I generally leave it like that and do the final timing with the 32v'r after 1000 miles or so, after the belt has fully "settled". Or, set it now with the 32v'r, and check it later.
I am not sure how far you can be off without damage, but I think it is at least 2 or 3 teeth (7.5 deg per tooth).
Good news, i got it roughly timed at least. Left off by 1 tooth, right off by 1 1/2. Not bad for doing it alone though. Before i made the mistake of leaving it at 45 BTDC when lining the cams up.
I am assembling 1990 S4 engine that a Porsche dealership disassembled. The WSM references copper colored links. I have only found one mark on one of the chains. Did something change on the chains in the later years?
The color of the links is immaterial, they're all the same metallurgically. I can't see the 'humps' on your cams in the pic you posted but if the humps are both pointing straight up and you have seven link endplates between the humps, you're good.