Was getting 'Fan fail' light illuminating and finding water was dropping, I kept topping it up and then decided to do a compression test. Middle 2 cylinders were down, I assumed blown head gasket.
I am attempting the job myself. Got the inlet manifold, carbs and airbox off today, noticed some mayonnaise in my airbox.
I had previously noticed someone had painted over the timing marks on the engine. Whilst checking over today it seems to me that the camshaft pulleys are 180 degrees out and I think the ignition sprocket is also out.
Crank Pulley

Distributor Cap

Ignition Pulley

Cam Pulley's - timing mark at 12 o clock, toward top of engine.

I thought I've heard that incorrect timing can cause low compression test results on some engines???? But then the car shouldn't start, this one started and ran quite well. Although I do think I noticed white smoke the last time I fired it up before doing this work. The car didn't overheat, decided to take action before a failure.
Also, I think I've heard it said that oil and water can mix at the inlet manifold??
Is it possible that bad timing and a blown manifold gasket could be the cause of my problems.
I'm finding mayonnaise in the airbox and water header tank but I didn't seem to be losing oil although the oil did seem contaminated when I drained it although the water didn't seem too bad when I drained that today.
The head gasket seal seems clean, no visible external sign of a blowing gasket.
Any advice idea's? Should I still assume head gasket blown and press on or refit cambelt with correct timing and test compression again?
I've checked the manual, the timing marks definitely seem wrong unless they were set up differently on my Lotus Excel SA, can someone confirm the timing marks are wrong?
Thank you!