In 1976 GM moved the location of the timing tab on the 350 about 12 degrees CCW.
Prior to 76 the tab was at about the 2 o'clock position. Starting in 76 model year the tab was moved to the 12 o'clock position (behind the water pump).
This change in tab location neccesitated a realignment of the timing mark (i.e. the scribed line on the outer rim of the harmonic balancer) a similar number of degrees.
That changed the radial relationship between the keyway and the timing mark. Pre 1976 the keyway and the outer mark lined up. After 76 the timing mark is 12 degrees CCW out of alignment with the center line of the keyway.
Since you have a balancer from the 80's (which has the mark in the same position as what would come stock on 2000 era engine) - this is not your issue. But the following may help.
As previously suggested, check that the rubber damper hasn't lost it's bond to the outer mass or inner hub. If it has, the relationship between the keyway and timing mark can be lost. When that happens, a timing light is useless.
Long story short, since your balancer is of the newer design the keyway and mark should be about 12 degrees out of alignment as shown below. This shows a late model balancer on an engine with an early timing cover. The drawn-in arrow points to the hub keyway on one end and to where the timing mark would be on an early SBC. The actual mark is what you would find on a post 76 balancer - like yours should be:
Sorry, I can't post images. Go read this link:
http://67-72chevytrucks.com/vboard/showthread.php?p=5354090#post5354090