I was told by the guy at gude to set my cam gears so the arrows are at 9o'clock and 3o'clock when the piston (closest to the cam gears) is all the way up. right now they point in the same direction.

stock cam gears, the bullfrog race package(head, cams, intake manifold, and throttlebody), and type s pistons

what is correct way to have them sitting?

 

are u adjusting the valve lash or something? if you are putting the car back together and it sounds like you are spin the crank to piston 1 is at top dead center TDC there is a little mark on the block and the crank pully that have to line up. then looking at the cams the cam caps with the holes at the end are made so you can put in a pin into the hole on the cam to hold them there. then put on your timing belt and you should be there, i would also use a timing light. make sure that you distributor rotor is also pointing to # 1 cyl or else you will be 180 out on the distributor