[Help! Woodruff key rolled, now I can't get the timing set right.]

Ok, I've acquired and checked with a timing light and I have it in time, but it sure isn't acting like it. The wiring seems fine.  The slot for the key is a little rough but not much, so I'm going to see about filling it in and seeing if that works. 

[Help! Woodruff key rolled, now I can't get the timing set right.]

Ok, so, I have a 1987 pathfinder, VG30i engine. Was driving home a couple weeks ago and the woodruff key on the crank rolled. I got a new key and pulled intake and heads to make sure that I didn't bend any valves and luckily I didn't, engine is holding compression as well since I have everything back together. Here's my problem though, it's acting like it's missing or just not in time. I put the #1 piston at TCD when I had the heads off, the timing marks on the cams aren't exact on the dimples, but from what I've been reading that's normal. I have counted teeth and there are 40 teeth between the cams and 43 teeth between LH cam and crank timing marks so from what I can tell everything is in time with the crank/cams. I have pulled and replaced the distributor multiple times moving 1 tooth at a time to check and see if I possibly had it in the wrong spot but it seems that it is in the correct spot. It will start, but it's really really rough and it's smoking and you can smell gas in the exhaust really bad like it's running rich or not firing on a piston on two. Is there anything that I missed that I should check, or does anyone have any ideas of what might be wrong?