My car is an 87 with auto. I'm fairly experienced with these engines and
was doing a valve adjustment. Initially did the adjustment with the car in neutral ( it's an automatic). Placed the trans back in park and turned the
engine over so I could build up some oil pressure. Then rechecked the
valve adjustment but this time forgot to place trans in neutral, next thing
I know I,ve lost my ignition timing. No.1 rotor no longer points to original
number 1 plug with number 1 on tdc on the compression stroke. I then
assumed there was issues with my timing chain. Removed timing chain
cover and timing is intact although I will replace chain and gears. Keep
in mind when turning engine over I'm turning crank by hand. Question,
how did this happen. Do I have issues at gear drive of dist. I'm off by
90 degrees on distributor timing.

i dont understand how adjusting the valves would have gotten your car out of time? you should just disconnect the coil wire, and keep turning it over...i dont understand

If you notice I mentioned that initially turned the engine over for the valve
adjustment by hand with the trans (automatic) in neutral. I then placed
the trans in park so I could build up a little oil pressure in the hydralic
lifters and then check my adjustment but then forgot to place the trans
back in neutral. When you try to rotate the crank by hand with the engine
in park you have resistance.

The easiest way to do this if you have no idea where you are is to pull a valve cover (which I am assuming is still off) over the number 1 cylinder bank. Turn the engine over by hand and wait for the #1 intake valve to open and close. Continue turning the damper around to top dead center. Pull your dist cap and line the rotor up with the #1 wire. This will get you close. We just did this with a crate motor.