I couldn't take a picture that showed all 4 marks on the sprocket, but the left mark on the inlet was below the head in the above picture. I have rotated the crank counter-clockwise a little so that the exhaust and inlet marks all line up pretty much parallel to the head now, so I think my fear of being one tooth out was wrong as suggested.
The problem now is that with the sprockets in this position, the timing marks do not line up!
I have tried to take the photo as straight-on as possible, but still show the "T" timing mark. It clearly does not line up
I took clearance measurements on cylinder 1 in this position and they were the same as when I took them with the timing marks lined up and the sprocket marks slightly misaligned as per my previous post.
Exhaust 1 & 2: .009"/.229mm - just under
Inlet 1 & 3: Couldn't even squeeze the .0015"/.038mm -

oh crap
Inlet 2 (middle): .002"/.051mm - pretty crappy too
HansJ wrote:...
As for the gaps, they should not be measured with the cams in this position. I can't recall exactly, but a rule of thumb is that one measures when the lobes are furthest away from the valves, i.e. 4 positions of the crankshaft. But in the manuals you'll find the description as to how the crank should be positioned.
I'm not sure if I understand you here - I've gone by the workshop manual with the lobes facing away from each other on cyl 1 like below...

... so I think I'm doing it right, but have just been thrown off by having the timing marks out.
It's a '96 model, so I'm guessing this could be the inlet valve stretch which I've read about in other posts. Apparently there was barely any clearance on the inlets when I had it done last time.
Sorry if this thread is a bit 'newbish', just figured I should be able to do the clearances myself. Read the manual and it seemed straight forward (just time consuming), but it looks like I have uncovered more than I bargained for! I'll measure cylinder 2, but maybe I should start thinking about ordering a head gasket and some of those updated inlet valves...