KZ440 Timing Mark Question

So I put the head on and lined up the timing marks on the gear and T mark. Put the tensioner on and it moved the upper line up. Removed the tensioner and moved the chain two teeth tensioned the chain with my finger. It was off the other way. Moved it back one tooth and finger tensioned again. Looked good. Put the tensioner on and it is close but is it close enough?  I really don’t want to replace the chain. 

Your picture shows the cam 180 degrees out.
The KZ400/440 engines rotate backwards [opposite direction of the wheels].
You turn the engine over with a 17 mm wrench on the ignition side of the crank.



.

No sure what you mean. That is the mark is the rear side of the bike, The arrow on the gear is facing the front of the bike, The notch on the camshaft is facing the rear of the bike. The engine has never been turned clockwise, always counterclockwise with a 17mm socket on the nut.
Would you clarify a bit? Thank you.

In the service manual for mine engine there is a good illustration how set these up correct. Have you checked in a service manual for your engine?

I do have the service manual and am constantly using it to get this bike running. The timing setup was done step by step by the book. I just wish I checked the marks before I took it apart as it was timed dead on when I checked with a strobe when I first got it. . Maybe I am just to nervous about it as I really want to ride. 

Looks to me like there are two topics getting mixed together here. 
In the first post, the picture and description concern camshaft timing. It is often impossible to get the mark on the cam sprocket perfectly lined up with the head surface. Looks like you have done the best that can be done, assuming the ignition plate was lined up with the proper mark.
The last post mentions a timing light. The only thing the timing light tells us is ignition timing, which is not at all the same as cam timing. Setting up the cam timing to factory specs includes using the TDC mark on the ignition plate. 
Timing the ignition includes using the F mark to determine when the coil should fire.

Sorry to confuse. I was saying It was firing in the right spot on the plate F mark. I figured with electronic ignition and no way to adjust it that the T mark would be in the rightt spot when cam gear mark was. The second picture is where the T mark is when the cam gear is lined up. 

 Too much slack on cam gear and cam chain, maybe one tooth off?

Thanks for giving me food for thought   I am just going to let it go for now as when the T mark is lined up, the cam mark is only a few millimeters below where it should be. 

Turn the crank by hand with cam chain tensioner on several times.
Should turn easy without resistance with pulled spark plugs.
Check the cam/crank tdc timing again!!!
Worst case would be a bent valve if cam timing one tooth off.

Plan was to put the head back on. Rotate the crank and listen for any issues. I know it  is not a tooth off. I tried it a tooth both ways originally. I did take a look at the gap where the cam and teeth were marked. It is tight on top and starts to gap as it comes around the side. Look normal to me. 
Plan got put on hold for awhile. Snapped s 6mm bolt off at 5 lbs torque. Supposed to 8.7.  I need to find one and then back to the plan. 
Thanks again for the input. It really helps. 

Problem solved:
Turn the crank about 20 or more times to let the tensioner adjust.