Timing, something out of whack Options

[trojanhorsepower]

Help! (IMG:style_emoticons/default/headbang.gif)

This is pissing me off. Just for the record I did nothing to this motor (some one else did)inside the case. That said I have a 74 2.0 T-IV on an engine stand. I am just about ready to do the tin when I think lets double check the timing and get the distributor on. I start to turn the motor and find TDC for #1 then adjust the valves, then rotate the crank 180 deg. and Holly Crap there is like a 1/8th of an inch play in the intake rocker!! Piston is at or near the bottom. Does this mean what I think it means (cam is not in there right)? Some body, please tell me the obvious thing that I am over looking or doing wrong! (IMG:style_emoticons/default/headbang.gif)

Thanks
-Pete

[trojanhorsepower]

I went and pulled the rocker arms and checked the push rods, they were seated properly (I put them in with the motor turned up).
Here is the cycle

Start:
Piston up crank marks up
exhaust valve is slightly open
Rotate CW as the piston goes down the exhaust valve closes
Piston at bottom and starts to come back up the intake opens closing when the piston
reaches the top
Continue to rotate CW and both valves stay closed as the piston goes up and down, as the piston reaches the top the exhaust valve begins to open, and we are back were we started.

Start
Piston at top rotate CCW

intake starts to open as piston goes down
closing when piston reaches bottom
as piston comes back up the exhaust valve opens closing when piston is at the top.
Continue to rotate and they both stay closed then it starts over.

-Pete