Please help me with my timing

I have a 1990 Gt pretty much stock except for intake coil and filter. I can only set my timing to 5 anything above that and the starter drags and the car will not turn over. You think my distributer is trashed or did my timing chain slip. engine has 135,000 on it
 
You need to pull the spout and let the car warm up before setting the timing...if you have done that then you need to move the distributor.

WARNING DO AT OWN RISK:
remove distributor cap.
note location of rotor (crank till at 12 o clock position)
remove distributor hold down screw
carefully lift distrutor out just enogh that you can move the rotor
move the rotor 1 tooth towards 11 o clock (this is by FEEL)
ensure it slides all the way into place as you lower the distibutor.
tighten down and replace cap.

this will give you a little extra ability to adjust timing.

BE VERY CAREFUL OR THE CAR WONT START/RUN CORRECTLY

Check for oil pressure.