When the arrow in the oil filter housing is pointing at the notch in the toothed crank wheel, things are at TDC. As long as you turn the crank ~90 degrees from there, the pistons will be at the middle of their travel and well away from the valves.
One of two things is going on here.
a) When you rotated the crank CCW, the chain loosened and jumped some number of teeth when it got bound up on the (stupid) lower plastic guide. The "stop" you feel is pistons touching valves. It generally takes 2+ teeth jumped to get to this, at least in my experience.
b) When you rotated the crank CCW, the chain loosened and is getting all bound up on the (stupid) lower plastic guide. Is the tensioner piston still installed? Basically, you never ever really want to rotate the crank with that tensioner piston out. Turning things CCW with it out is an even bigger no-no.
You can try taking the cam sprockets off and rotating the cams so that no valves are fully opened. That might buy you enough clearance to turn the crank further and try the starter trick on the damper bolt. You'll probably also need to try pulling up on the chain to get it properly engaged with the crank sprocket if it is binding in the lower plastic guide.
Before doing anything, try draining the oil and see what all is in it. If you have lots of aluminum shavings, then the idler sprocket most likely snapped off of the timing case (been there myself). If you see some ball bearings, then the idler sprocket's bearing blew out (also been there). The latter situation seems most likley and it has happened to a lot of folks. The idler setup is junk in the original M42 motors. I HIGHLY recommend swapping in an M44 timing case. You need to make sure to use M44 oil pump gears, and you will need an adapter bracket for the crank position sensor (I know that Metric Mechanic can probably sell you one). I had the bearing fail on my idler sprocket. So I replaced the thing ($170 part!!!) and then a year later it snapped off of the timing case entirely. The casting probably got damaged when the bearing blew out.
Also invest in a magnetic oil pan drain plug. Turner Motorsport sells one, and it is worth its weight in gold. I had one in there when the bearing blew, and all 6 balls were neatly stuck to it.