It looks one whole tooth off to me. It will probably run without the pistons and valves fighting, but something isn't right.
Edit: Let me expand. When putting on a new belt it is easy to get too many belt teeth between the cam sprocket and the crank sprocket. The tensioner does not take care of this, and you get what you are seeing on your car. Make sure you're at TDC on #1 by some method besides the flywheel mark (like a long thin screw driver down the spark plug hole). Once that is certain, get your flywheel lock in place. Compress and pin the tensioner and take the belt off. Rotate the cam sprocket so that the marks line up. Now get the belt on there so that when it is tight between the cam and crank sprockets, the marks still line up. When you release the tensioner, these positions won't move. If you have the belt tension measuring tool 9201, it should read 4.0 +-.3 with a new belt.