Question about timing on the '91. Help!

Okay, the '91 has been sluggish on the low end but great on the top end. I think I've checked all the sensors and so far so good. I pulled the timing cover off yesterday to take a look, and I *think* the timing belt is off, but the problem is that I'm not sure what I have to line up. The Chilton's manual isn't much help and the directions off Stinger's site are a little different than what I'm looking at here.

Here's a pic of what I have...

The cam pulley sprocket (#1) is lined up with a notch on the cover, but what am I supposed to do with the crank pulley (#2) and the other sprocket (#3).

edit: Oops! I just noticed that this pic doesn't show the crankshaft pulley. Oh well, let's pretend that's what #2 is for the sake of discussion. That marking is about where the notch on the crank pulley is.

By the way, I've marked the notches on the pulleys in the pic to help you see where there at.

I *think* I'm supposed to line them up so they point to one another. Is that right? Please let me know if I'm doing anything wrong here. I thought I had a pretty good idea of what I'm doing!

ps. Here is a pic of it with the timing cover on...

Alright, I've done a *lot* of searching and I think I figured it out. Please tell me if I'm wrong with anything here....

Set the cam pulley mark with the center mark on the plastic marker (like I have it in the pic). Also, set the notch in the crank pulley to TDC on the timing cover. And the auxiliary pulley doesn't matter (is this right?).