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Neither is "better," you use want the car was made for (round tooth for 84). Square fits square, round fits round. Just different years.

On the holes in the sprockets, use the middle one, unless you want to destroy your engine (or if you get adjustable cam sprockets). The other two positions are N/A for our engine.

If you are replacing your timing belt because it "died" you should also replace the timing belt tensioner ($30-50). And why did it die? Are your cam oil seals leaking (behind the sprockets)? Replace them too. If there is any oil inside the timing belt case look for the source.

And what do you mean by the timing belt died? Not enough information. Teeth missing, turned into spaghetti, split......
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