When the crankshaft timing mark is lined up on an ej20 subaru motor should the keyway be facing upwards? the one i am working on faces downwards and when i put the crankshaft/drive belt pulley on the mark doesnt line up with tdc on the timing belt cover

On the 2.4liter four cylinder the marks on the camshafts are between the two cam sprockets. The left (exhaust) cam mark is the notch directly to the right of the UP mark and for the right (intake) cam the notch is directly to the left of the 2.4 FRONT mark. Line those two mark up with each other. The crankshaft mark is located on the sprocket. It is a triangle pointing upwards. You align that mark with the downward facing triangle located on the engine plate directly behind the crankshaft gear.

The camshaft and Crank mark (key way) should be pointing at each other (directly aligned with each other).
ie. The Camshaft mark will be point directly downward toward the crank and the crank mark (key way) will be pointing directly upward toward the camshaft.

the camshaft keys should be positioned downwards at 90 degrees to the head surface(Gasket surface) This will place the timing marks on the sprocket in the 1o'clock position upwards. The black link on the chain will be aligned with the 2 dots on the sprocket. This applies to both heads. the crankshaft sprocket will be facing down and the black link will be on the single dot. The crankshaft keyway will be located at approx. the 11 o'clock position.

If this sounds a bit daunting then get a workshop manual as it explains the process well. The book says not to turn the camshafts /crankshaft with the chains removed and I suspect that if this is not adhered to then bent valves will result.

chain. R&R instructions from autozone.com pasted below. let me know if you have any more questions.

REMOVAL & INSTALLATION
SOHC Engine See Figures 1, 2, 3 and 4

1. Disconnect the negative battery cable.
2. Remove the timing chain front cover.

During timing chain and sprocket removal, position the crankshaft 90 degrees past Top Dead Center (TDC), to make sure the pistons will not contact the valves upon assembly.

1. Carefully rotate the crankshaft clockwise so the timing mark on the crankshaft sprocket and keyway align with the main bearing cap split line (90 degrees past TDC).
2. Remove bolts, then remove the timing guides and tensioner.
3. Remove the camshaft sprocket bolt, using a 7 / 8 in. (21mm) wrench to hold the camshaft. Then remove the timing chain and camshaft sprocket. Remove the crankshaft sprocket, if necessary.

To install:

1. Inspect the chain for wear and damage. Check the inside diameter of the chain, it should be no more than 16.77 in. (426mm). Inspect the chain guides for wear or cracks and the timing sprockets for teeth or key wear. Replace components as necessary.
2. Verify that the crankshaft is positioned 90 degrees clockwise past TDC from the keyway (keyway at 3 o'clock).
3. Bring the camshaft up to No. 1 TDC by loosely installing the sprocket and rotating the sprocket until the timing pin can be inserted. The camshaft contains wrench flats to assist in turning the shaft. The dowel pin should be at 12 o'clock when the camshaft is at TDC and a timing pin ( 3 / 16 in. drill bit) should then install at about the 8 o'clock position.
4. If removed, install the crankshaft sprocket, then rotate the crankshaft counterclockwise 90 degrees up to No. 1 TDC (keyway at 12 o'clock).
5. Position the chain under the crankshaft sprocket and over the camshaft sprocket. If necessary remove the camshaft sprocket, then slide the camshaft sprocket into position with the chain already engaged. The timing chain should be positioned so that one silver link plate aligns with the reference mark on the camshaft sprocket and the other aligns with the downward tooth (at the 6 o'clock position) on the crankshaft sprocket. The letters FRT on the camshaft sprocket must face forward, away from the cylinder head and excess chain slack should be located on the tensioner side of the block.
6. Temporarily install the timing pin to verify proper alignment of the camshaft and sprocket, then install and tighten the sprocket bolt to 75 ft. lbs. (102 Nm). Again, use a wrench on the camshaft flats to hold the shaft in position while tightening the bolt. Do not allow the camshaft retaining bolt to torque against the timing pin or cylinder head damage will result.
7. Install the chain guides with the words FRONT facing out. Install the fixed guide first and verify the chain is snug against the guide, then install the pivot guide. Tighten the bolts to 19 ft. lbs. (26 Nm) and verify that the pivot guide moves freely.
8. Retract the tensioner plunger and pin the ratchet lever using a 1 / 8 in. No. 31 drill bit inserted in the alignment hole at the bottom front of the component. Install the tensioner and tighten the bolts to 14 ft. lbs. (19 Nm), then remove the drill bit.
9. Make one final check to verify all components are properly timed, then remove all timing pins.
10. Install the timing chain front cover.
11. Connect the negative battery cable, start the engine and check for leaks.
    

Fig. Fig. 1: At 90 degrees past TDC, the crankshaft sprocket timing mark and keyway will align with the main bearing cap split line

Fig. Fig. 2: Exploded view of the timing chain and sprocket assembly-SOHC engine

Fig. Fig. 3: Insert the timing pin to ensure that the camshaft is at No. 1 TDC-SOHC engine

Fig. Fig. 4: When the camshaft is at TDC, rotate the crankshaft counterclockwise 90 degrees to achieve TDC

Timing Chain and Sprockets
REMOVAL & INSTALLATION

1. 
   
   
   
   Fig. 1: At 90 degrees past TDC, the crankshaft sprocket timing
   mark and keyway will align with the main bearing cap split line
   
   
   
   
   
   
   
   Fig. 2: Exploded view of the timing chain and sprocket
   assembly - SOHC engine
   
   
   
   
   
   
   
   Fig. 3: Insert the timing pin to ensure that the camshaft is at
   No. 1 TDC - SOHC engine
   
   
   
   
   
   
   
   Fig. 4: When the camshaft is at TDC, rotate the crankshaft
   counterclockwise 90 degrees to achieve TDC
   
   

DOHC Engine

1. Disconnect the negative battery cable.
   
2. Remove the timing chain front cover.
   NOTE: During timing chain and sprocket removal, position the
   crankshaft 90 degrees past Top Dead Center (TDC) to make sure the pistons will
   not contact the valves upon assembly.
   
   
   
3. Carefully rotate the crankshaft clockwise so the timing mark on the
   crankshaft sprocket and keyway align with the main bearing cap split line.
   
4. Remove the bolts, then remove the timing guides and tensioner.
   
5. Remove the camshaft sprocket bolts, using a 7?8 in. (21mm) wrench
   to hold the camshaft. Then remove the timing chain and camshaft sprocket. Remove
   the crankshaft sprocket, if necessary.
   To install:
   
   
6. Inspect the chain for wear and damage. Check the inside diameter of the
   chain, it should be no more than 23.15 in. (588mm). Inspect the chain guides for
   wear or cracks and the timing sprockets for teeth or key wear. Replace
   components as necessary.
   
7. Verify that the crankshaft is positioned 90 degrees clockwise past TDC. The
   crankshaft keyway should be at 3 o'clock aligned with the main bearing cap split
   line to prevent piston and valve damage.
   
8. Install the camshaft sprockets, retaining bolts and washers. Make sure the
   letters FRT on the sprockets face forward, away from the cylinder block. Use the
   wrench flats provided on the camshafts to hold the shaft and tighten the bolts
   to 75 ft. lbs. (102 Nm).
   
9. Bring the camshafts up to No. 1 TDC by rotating the camshafts and sprocket
   until the dowel pins are at 12 o'clock. Install a 1?6 in. drill bit
   into the hole in the sprocket about 9 o'clock.
   
10. If removed, install the crankshaft sprocket, then rotate the crankshaft
    counterclockwise 90 degree up to No. 1 TDC (keyway and sprocket timing mark at
    12 o'clock, in alignment with the block timing mark).
    
11. Position the timing chain under the crankshaft sprocket and over the
    camshaft sprockets so 2 silver link plates align with the reference marks on the
    camshaft sprockets and another 2 plates align with the downward tooth (at 6
    o'clock position) on the crankshaft sprocket. Excess chain slack should be
    located on the tensioner side of the cylinder block.
    
12. Verify that the crankshaft reference mark aligns with the cylinder block
    mark at 12 o'clock and that the timing pins are installed in the holes at about
    the 9 o'clock position. Remove the timing pins from the camshaft sprockets.
    
13. Install the timing chain fixed guide to the right of the block face toward
    the water pump. Tighten the bolts to 21 ft. lbs. (28 Nm) and verify the chain is
    snug against the guide.
    
14. Install the pivoting chain guide and check for clearance between the block
    and head. Tighten the bolt to 19 ft. lbs. (26 Nm) and verify the guide pivots
    freely.
    
15. Install the 2 forward camshaft bearing caps and the upper timing chain
    guide, then tighten the retaining bolts to 124 inch lbs. (14 Nm).
    
16. Retract the tensioner plunger and pin the ratchet lever using a 1?8 in. (3.18mm) No.
    31 drill bit inserted in the alignment hole at the lower front of the component.
    Install the tensioner and tighten the bolts to 14 ft. lbs. (19 Nm), then remove
    the drill bit.
    
17. Make one final check to verify all components are properly timed, then
    remove all timing pins.
    
18. Install the timing chain front cover.
    
19. Connect the negative battery cable, start the engine and check for leaks.
    
    
    
    
    
    Fig. 5: Rotate the crankshaft clockwise until the timing mark
    on the crankshaft sprocket and keyway align with the main bearing cap split line
    
    
    
    
    
    
    
    
    Fig. 6: Loosen the timing chain tensioner mounting bolt . . .
    
    
    
    
    
    
    
    Fig. 7: . . . and remove the tensioner from the engine block
    
    
    
    
    
    
    
    Fig. 8: Retract the tensioner plunger and pin the ratchet lever
    with a 1?8
    in. (3.18mm) drill bit inserted in the alignment hole
    
    
    
    
    
    
    
    Fig. 9: Remove the mounting fasteners from both timing guides .
    . .
    
    
    
    
    
    
    
    Fig. 10: . . . and remove the timing guides from the engine
    
    
    
    
    
    
    
    Fig. 11: Remove the camshaft sprocket bolts, using a 7?8 in. (21mm) wrench
    to hold the camshaft
    
    
    
    
    
    
    
    Fig. 12: Remove the timing chain and camshaft sprockets
    
    
    
    
    
    
    
    Fig. 13: Insert the timing pins to verify that the camshafts
    are at TDC
    
    
    
    
    
    
    
    Fig. 14: Make sure that the silver link plates and reference
    marks are all in alignment as shown
    
    

Doesn't matter what engine it is as long as it has valves and uses petrol (not diesel), the camshaft lobes at cylinder #1 should always face upwards. This positions the valves at it's closed setting (combustion), this is known as Top Dead Center or TDC. With this in position, all your timing markers should align on their marks (cam pulley, crankshaft pulley or flywheel ring gear). Do not confuse yourself with other cylinders being this and that, as long as number 1 cylinder is at TDC or 0* you have set your timing correctly.

Pls. give this a rating, thank you.

Dear Friend
Removal: Support engine: remove -engine mounting, auxiliary drive belt, water pump pulley, crankshaft pully bots & crankshaft pully, timing belt covers....turn crankshaft to TDC on No 1 cylinder, ensure crankshaft sprocket, camshaft sprocket, oil pump sprocket & balancer shaft sprocket timing marks lighned. Pls note: Timing marks on camshaft sprockets should align with cylinder head uppter face, dowl pins on camshaft sprockets should face downwards....Slacken tensioner botl. Move tensioner away from belt & tighten bolt.
Remove: automatic tensioner unit bolts, automatic tensioner unit, timing belt, crankshaft bolt, crankshaft sprocket, crankshaft sprocket guide washer...slacken balancer shaft belt rensioner bolt, move tensioner away from belt & lightly tighten bolt...Remove balancer shaft belt.

Installation:
ensure timeing marks aligned.Note: Timing marks on camshaft sprockets ahould align with cylinder head upper face, exhaust sprocket mark is on recess but inlet sprocket mark is on tooth. To check oil pump sprocket positionded sorrectly: remove blanking plug from cylinder block, insert 8mm diameter Phillips screwdriver in hole. ensure screwdriver is inserded 60mm from face of cylinder block. If screwdriveer can only be inserted 20mm-turn oil pump sprocket 360". Inset screwdiver again.
Fit balancer shaft delt in anti-clockwise direction starting at crandkshaft sprocket....Slacken balancer shaft belt tensioner notl, turn tensioner clockwise to tension belt. Tighten bolt to 15-22 Nm... Applu thump pressure to belt at tentioner, belt should deflect 5-7mm. If not: Repeat tensioning procedure.... Install - chankshaft sprocket guide washer & crankshaft sprocket.
Thighten crankshaft centre bolt, tightening torque:110-130Nm. Please note, ensure crankshaft sprocket guide washer is fittet correctly. oil threads & contact face crankshaft botl before fitting.

Click on the following free direct Link. It has the Timing: Belt and Mark Diagrams for your 1992 Subaru Legacy.

Let me know if this helped, or if you have additional information or questions. Feel Free to contact me at FixYa.com!

http://www.2carpros.com/car_repair_information/year/1992/make/subaru/model/legacy/1992_subaru_legacy_timing_belt_diagram_marks.htm

all marks align at noon,both lines on camshafts point up ,don't follow any marks on face of crankshaft gear follow line located on reluctor this is part of the crankshaft gear on back of it, the line on the reluctor needs to face noon and match a line on the oilpump where the crankshaft position sensor is installed good luck

Your 180 off dont try to start it anymore unless you want bent valves.I just bought a fixer w/bent valves due to 180 off time the woodruff key on a Subaru isnt tdc its the vertical line on the outer fin on the pulley in line with the vertical line on the oil pump 12 oclock the top cams single line 12 oclock. II the double lines pointing 6 oclock pointing to bottom cams II double line at 12 oclock.A manual  is pricless for this info and saves time