If your timing chain is loose then it's got to be the timing chain tensioner. It may be bad. Post some pics man. Did you set it to TDC before you looked at the cam positions?
Here is the tensioner. Took this from my F/S thread. There are 2 different ones. The 1 on the right is the older style, and left is newer. The newer version has a bigger oil hole so it keeps the chain tighter.