I have a Subaru 2001 2.5L SHO and when aligning all timing marks the engine seem to not want to rotate....feals like it might be toughting piston to valves.

Getting the engine to top dead center (TDC) on the compression stroke is an important step when replacing the timing chain on a 2008 Hyundai Sonata 2.4L. Here are the general steps to follow:
1. Locate the timing marks: Look for the timing marks on the crankshaft pulley and the camshaft sprocket. The crankshaft pulley should have a mark on it, and the camshaft sprocket should have two marks that need to be aligned.
2. Rotate the engine: Rotate the engine by hand using a socket wrench on the crankshaft bolt. Turn the engine clockwise until the timing marks on the camshaft sprocket are aligned.
3. Check the piston position: Remove the spark plug from the number one cylinder and use a long screwdriver to feel for the position of the piston. When the piston is at the top of its stroke, you will feel resistance.
4. Adjust the position: If the piston is not at TDC on the compression stroke, rotate the engine again until it is. You may need to rotate the engine several times to get it in the correct position.
5. Double-check the timing marks: Once the piston is at TDC on the compression stroke, double-check the timing marks on the crankshaft pulley and the camshaft sprocket to ensure they are still aligned.
Once you have confirmed that the engine is at TDC on the compression stroke, you can proceed with installing the new timing chain. It's important to follow the manufacturer's instructions carefully and to torque all bolts to the correct specifications. If you are unsure about any step of the process, it may be best to consult with a mechanic or seek further guidance from an expert source.

1. Remove all spark plugs so that the crank shaft could be rotated easily.
2. Rotate the crankshaft to align the timing mark of the crankshaft gear with the index mark on the engine cover.
3.Rotate the crankshaft +/- 30 degrees to ensure that the valve could not hit the pistons when aligning the camshaft gears.
4. Align the camshafts as described below.
5. Align the crankshaft timing gear with the index mark.
6. Loose and lock the timing bearing at its farther position. Install a timing belt starting from the crankshaft gear, then right cam, then left cam, and at last the timing bearing.
7. Press and hold the timing belt to keep it firm on the gears and loosen the timing bearing. It will get adjusted by itself with the help of spring attached to it. Do not put extra force on the bearing to adjust it more.
8. Confirm the timing marks.

You have not set it to the factory spec, and its probably 180 degrees off. Rotate the crank to top dead center (the mark on the crank toothed pulley, align the cam timing marks, refit the belt THEN release the tensioner. Rotate the engine manually to verify that all the timing marks realign themselves.

TDC is an acronym for Top Dead Center. It is when the piston has reached the very top of its travel and there is nowhere for the piston to go but down. If you align the timing marks on the engine, the piston will be at TDC with the valves on #1 closed.

To position your crankshaft and cam to the correct position, it should be done BEFORE removing the belt if possible. If the belt has already been removed and/or the belt was broken, the same principles apply, but you will have to go about it completely different.

Turn the engine clockwise to align the "O" on the crankshaft pulley with the "O" on the outer timing belt cover.
Remove the plug in the outer timing belt cover and look through the hole. The timing marks on the camshaft pulley should align with the cover pointer. If they do not align, rotate the crankshaft one full revolution and align the "Os" again. They should now align. When every thing is lined up like this, your engine is timed to #1 at TDC and the valves on #1 cylinder will be closed.

Now if the belt has already been removed or if the belt was broken, You may have to temporarily put the outer cover back on. You may have to put it on and take it off several times until you get things lined up. Time the crankshaft "Os" first. It will not matter which rotation you are on if the belt is not installed. (TDC is TDC - the piston doesn't really care where the valves are - that's the camshaft's problem LOL)
After the crank shaft is lined up, turn the camshaft so the timing marks line up with the pointer. Then remove the front cover and install your belt.

After setting the timing belt tensioner, rotate the engine two full turns clockwise and recheck to make sure that all the timing marks still line up. If they do not - repeat the procedure.

TIMING BELT & SPROCKETS R & I
NOTE: Some procedures may differ slightly due to engine
construction.
Removal
1) Remove all necessary air ducts. Position No. 4 piston at
TDC of compression stroke. Align timing marks. See Fig. 2. Remove fan
and fan shroud. Remove belts. If necessary, remove radiator and
splashguard.
2) Prevent engine from rotating and remove crankshaft timing
pulley retaining bolt. Remove upper and lower timing belt covers.
Remove spring from tension pulley. Loosen adjusting bolt and move
pulley toward water pump. Remove timing belt.
CAUTION: Ensure pistons are at TDC when rotating camshaft or damage
may result.
Inspection
1) Handle timing belt carefully. Avoid twisting or kinking
belt. Do not allow belt to become contaminated by water, oil, dirt or
other contaminates. Inspect belt for cracks or damage. If necessary,
replace.
2) Measure tension pulley spring length and force. Spring
length should not exceed 2.76" (70.2 mm) and spring force should not
be less than 197-347 lbs. (27-48 kg).
3) Replace tension pulley spring if not within specification.
Installation
1) Pull tensioner fully toward water pump side and
temporarily tighten retaining bolt. Ensure No. 4 cylinder is at TDC on
compression stroke by rotating crankshaft until keyway aligns with
mark on front crankshaft seal housing (12 o'clock). Rotate camshaft
until timing mark on cam gear (arrow) aligns with mark on upper
camshaft cover (notch). See Fig. 2.
NOTE: When timing marks are aligned as stated above, No. 4 piston
is at TDC on compression stroke.
2) Position timing belt over crankshaft sprocket, oil pump
sprocket, camshaft sprocket and tensioner in that order. Ensure belt
is positioned in sequence given and without slack between sprockets.
Loosen tension sprocket adjusting bolt allowing spring tension to
tighten belt. Tighten adjusting bolt temporarily.
3) Temporarily install crankshaft pulley bolt and rotate
crankshaft 2 complete revolutions in opposite direction of engine
rotation, until marks on crankshaft and front oil seal retainer are
aligned again. See Fig. 2. Loosen tensioner lock bolt, allowing
tesioner spring to fully adjust tension. Tighten tensioner lock bolt.
4) Install timing belt covers. To complete installation,
reverse removal procedures. Tighten all bolts to specification. See
TORQUE SPECIFICATIONS table at end of this article.
Fig. 2: 2.3L & 2.6L Timing Alignment Marks
Courtesy of Isuzu Motor Co

WARNING Timing belt maintenance is extremely important! The A4 and Passat model utilize an interference-type, non-free-wheeling engine. If the timing belt breaks, the valves in the cylinder head may strike the pistons, causing potentially serious (also time-consuming and expensive) engine damage. The recommended replacement interval for the timing belt is at least every 6 years or 60,000-90,000 miles (96,000-144,000 km), depending on vehicle usage and engine type.
NOTE If removed and reinstalled, the timing belt must be installed in the same rotational direction as removed.

VW Passat & Audi A4 1990-2000 Repair Guide
Timing Belt - REMOVAL & INSTALLATION

WARNING Do NOT turn the engine or camshaft with the timing belt removed. The pistons will contact the valves and cause internal engine damage.


2.0L (9A, ABA) Engines

1. Disconnect the negative battery cable and remove the accessory drive belts, crankshaft pulley and the timing belt cover(s).
2. Temporarily reinstall the crankshaft pulley bolt and turn the crankshaft to TDC of No. 1 piston. The mark on the camshaft sprocket should be aligned with the mark on the inner timing belt cover or the edge of the cylinder head.
3. With the distributor cap removed, the rotor should be pointing toward the No. 1 mark on the rim of the distributor housing. On 8 valve engines, the notch on the crankshaft pulley should align with the dot on the intermediate shaft sprocket.
4. Loosen the locknut on the tensioner pulley and turn the tensioner counterclockwise to relieve the tension on the timing belt.
5. Slide the timing belt from the sprockets

Fig. Adjusting the belt tension on a 2.0L 8 valve



Fig. Remove the timing belt cover




Fig. Align the timing marks





Fig. Locate the tensioner




Fig. Loosen the tensioner bolt




Fig. Mark the belts direction of rotation


To install:

1. Check the alignment of the timing marks. On 16-valve engines, the mark on the tooth should align with the mark on the rear belt cover.
2. Install the new timing belt and tension the belt so it can be twisted 90° at the middle of it's longest section, between the camshaft and intermediate sprockets.
3. Recheck the alignment of the timing marks and, if correct, turn the engine 2 full revolutions to return to TDC of No. 1 piston. Recheck belt tension and timing marks. Readjust as required. Torque the tensioner nut to 33 ft. lbs. (45 Nm).
4. Install the belt cover and accessory drive belts.
5. If the belt is too tight, there will be a growling noise that rises and falls with engine speed.

continue...

Complete instructions including pictures for the 22 http://www.subaruvanagon.com/tom/Timing%20Belt.htm

your timeing marks are on the block rite abouve the cams on either side and on the block in the middle but line the center mark on the teeth there is a mark not the arrow the arrow is where tdc is the mark is on teeth good luck.

If you are talking of the rubber timing belt setting then rotate the cam gear till the timing mark (small hole) on the camshaft gear aligns with the mark on the plastic cover behind it. Mark is on top of plastic cover (12 'o' clock).
Rotate the crank till the timing mark (groove, not the one for the crankshaft woodruff key) on crankshaft gear is aligned with the mark on the bottom of the plastic cover behind it. (6 'o' clock).
Tighten tensioner against timing belt rotate engine a few times make sure alignment of timing marks remain.

I received this explanation for the 1800 Subaru Leone (same vehicle i think) from another forum. Have yet to make use of it but I hope it helps.

Find top dead centre of Crankshaft. (there are 3 timing marks close together, the middle one is TDC). If you are still unsure then remove number one spark plug and insert a long small screw driver down the hole with the piston near the top of it's stroke. As you rock the engine over back and forth you will feel TDC with the screw driver. By tracing the number one cylinder plucg lead back the distributor cap and then removing the cap you should be able to see if the engine is at number one in the firing sequence.

Rotate the drivers side camshaft

Now rotate the crankshaft one hole turn till the 3 marks are re-aligned.

Now rotate the passenger side camshaft until the hole in the sprocket lines up the the slot in the top of the cam cover. Put belt on.

Rotate the crankshaft 2 whole turns and double check that the sprockets still line up to their respective marks.

Start engine