I thought when I got to the point of installing the new timing chain and sprockets on my 88gt that the proper alignment of the sprockets would obvious. I sure don't want to screw this part up so I am asking even if it is a stupid question. At this time, I have both old sprockets removed. My timing had jumped so I know the relative positions of the crank and cam shafts are not right. Can someone please show me a helpful photo or describe the answer?

There is a small dot on each sproket, on the smaller one it is on a tooth and on the large one it is between two teeth. They point to each other. Larry

Thanks Larry,
Looking at the sprockets I see that the original large on has sort of a mirror image tooth for a mark the matches the dot on the new one. The old and new small sprockets are identical minus wear. On all of these sprockets, the marks are centered on the teeth. I will proceed with them facing each other as you say.

and - a fun tip: when them 2 dots are pointing at each other and the chain guard mark - that is TDC #4 - NOT TDC#1

TDC #1 is when both dots are at the very top.

Here's a pic from my collection. You'll note that because it's a chain drive, that both dots are on the teeth (not one on a tooth and one on a valley as Larry mentioned). The dots are only as he specified when it is a direct gear drive without a chain.

Pyrthian and Bloozberry are both right. That said, it's your call whether you want to set the timing for TDC #1 or #4. Just remember to set the distributer accordingly.

And after you install the timing chain, you can turn the engine manually to whichever spot you want. So, for example, you could install the gears with the marks facing each other, then rotate the crankshaft one turn to put it at TDC #1.