Looking at the picture, the install appears normal. The nose of the cam is not supposed to stick out or even be flush with the face of the sprocket. Put the bolt and thick washer on and tighten it up, as PoppyMod said, you should have .001 to .007 end play between the cam retainer plate (that is bolted to the block) and the back side of the sprocket. If you can't turn the cam, then it is too tight. As far as the dowel pin, it depends on whether you are using a fuel pump eccentric or not. Now if you are not using one, reinstall the counter weight slinger, its tab goes into the hole where the dowel is short. Since this is a smooth face sprocket, you can't use a 2 piece fuel pump eccentric. If you are using a fuel pump eccentric, it has to be an early 1 piece, so then yes, you need a longer pin to go into the hole in the eccentric. Or you can do like the police 351W's did. On this engine they used a 2 piece eccentric, but unlike most 2 piece units with a tab on the back, they were drilled for the dowel to come thru, only they still used a short dowel in the cam. Ford then installed another shorter dowel into the sprocket, butting up against the one in the cam, and that stuck out out just far enough to drive the eccentric. The large thick washer kept it in place, and yes it sounds hokey, but worked just fine.
One last word, if you decide to make a dowel pin, make sure it is a hardened piece of steel, I've seen guys try to make them from grade 8 bolts, only to have them break.
