check if the cam gears have their dots alligned aswell?
disregard, just saw you already did that
I would replace the timing belt and set the timing correct according to the guides, it should work then
The way to do it is to loosen the 2 bolts which hold the distributor assy and rotate the entire thing.
If you have it set about halfway it will be roughly correct, but the way to perfect it is to use a timing light
As you mentioned your spark plugs were wet-looking I suspect the headgasket failed.
These differences in compression will not be good for your engine in the long run even if it was running well
If you feel like you are mechanically inclined enough I would replace the headgasket instead of doing an engine change
Do the basics. Compression test. Timing. Did you touch the distributor? Got the correct plugs? Disconnected grounds or lose plugs (mapsensor??)
Maybe just a piece of cloth you had blocking the intake got sucked in the intake?