Re: How to find 32 degrees before TDC?
You don't need anything to static time that engine. Simply remove and ground all plugs so the engine will not start or kick back. Then , with the ignition switch on and the controls in full throttle, turn the flywheel by hand slowly and see where the top plug fires. Adjust distributor linkage so the top plug fires at either 30 or 32 degrees before TDC. (Late 70s, Chrysler changed timing specification from 32 to 30 degrees to account for poor marine gas quality) When you rock the flywheel back and forth a couple of degrees it should fire each time. In fact, once set at the correct timing position, if you press in on the drive belt and release , it should spark each time.
The line you found on the flywheel should be 36 degrees BTDC and it is used to find TDC by measuring the piston position or depth at that line. In other words, you use a special tool to set the piston to (example only--I forget the exact number and it is different for the 2.80 crank 105, 115, 120, 135 hp and the 2.875 crank 125 and 140 hp) .028 inches and then set the block pointer to match the line on the flywheel. The reason is because this is much more accurate than trying to find TDC with the piston at the top of its travel. I don't know the significance of 36 degrees and why they chose it instead of 32 degrees but it is 1/10 of 360 so that may be it.
IF the screws holding the block pointer are undisturbed or still painted, or if there are no scuff marks on the slots, you may safely assume that the pointer is set correctly to TDC and may time from it. Never mind---looking back, I see your block is unpainted and thus a replacement. You should double check pointer position. Without the tool, use a screwdriver to "feel" for the top piston at TDC and see if the 0 mark on the flywheel lines up with it.
I see that your block pointer has an arrow at the long line. I can not see other marks because of the flash. This is TDC. IF your pointer has smaller lines, 32 degrees is spark at 4 small lines to the left of the TDC mark with the 36 degree mark on the flywheel pointing at it.
Late 70s Chryslers had a decal applied to the flywheel and this (as you can see from the photo) only went to 32 degrees with a single line on the pointer. Note the position of the distributor pulley in relation to the 32 degree mark on the flywheel.
At any rate, whether you have marks stamped in the flywheel rim or a decal, the only important ting is to determine TDC and from there, 32 degrees advanced. Since timing at idle can vary a couple of dehrees either way, the ONLY important setting is 32 or 30 degrees--whichever you choose.