Yes it will run like this because the cam turns once for every two turns of the crank. The spark plug wires must still installed so they still fire at the right time. If the engine has the wrong year damper for the timing cover (or the other way around) then the timing marks will be on the wrong side.
Just to save yourself a lot of confusion pull it apart and follow my setting up instructions here;
http://challenger.mpoli.fi/forum/viewto ... =4215#4215
Check that the timing mark on the damper does reflect true TDC at the piston. Sometimes dampers go faulty and the outer part starts to twist around. Then they fly apart at speed and exit through the fender or hood.
Sounds like a cool car by the way. Wouldn't mind seeing a photo.