With the cylinder head attached to the engine block, you can now time the camshafts. First, align the camshafts at TDC and install the camshaft alignment tool (BMW tool 11-3-240). The two dots on the camshafts should face upward. Only after the camshafts have been properly aligned at TDC, move the crankshaft back to TDC and reinstall the flywheel lock pin. You are now ready to set the camshaft timing (see our article on Camshaft Timing and Vanos Unit Installation)http://www.pelicanparts.com/bmw/techarticles/E36-Camshaft-Timing/E36-Camshaft-Timing.htm.