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Peugeot 407 1.6 hdi - timing belt change - jip

ive had the head off my pug after the cam chain guide smashed head checked out ok cannot set the timing at tdc engin locks can only set it with pistons 1&4 at the bottom of there stroke. their are two locking holes in the flywheel do you set this with 1&4 at the bottom?because this is the only way the engin turns without locking .wont start but there is smoke comming out of the air intake?????? i am a diesle fitter but spent 20 years on coaches new tech baffles me any pu machanics out there cheeeeers jip.....

 

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