Nice job!!! Yes that is the correct drain plug!
I cannot say that I have seen that particular way to set the timing. That pointer in that location...... Seems like there are many different/similar solutions so that console center cover need not be disturbed!!!
Did the balancer get remarked or do you take the timing off of a different cylinder??
Mark, if that bellhousing is from your car....you need new shocks..or your springs are too soft...or both...no matter what the ride height! (Stock DeCarbon shocks or changed...?)
Scraping the bellhousing is caused by either a SERIOUS crown in the road....or serious ass dragging by the suspension allowing the car to sink too low.....there should be travel limiters installed in the shocks....and the springs and shock damping should reduce the excess movement but for the worst of worse cases....then you are on the limiters in the shock to protect you! Perhaps that is why my bellhousing looked so.....similar!