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The only way you'd get that error, using the crank hub and notch on the lower timing cover is if the head has been decked to or below minimum. If at minimum, and adjustable cam sprocket or a modified cam sprocket with an eccentric bushing would be the fix. If below minimum a different head is the fix.
I had the same 2.7i setup with .035" off and deeper piston notches and my timing wasn't that far off.
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