yep... goes on top of the chain guide. if the engine is stuck because the valves were out of time you may have bent valves.
fyi.... holding the starter "on" when the engine won't turn will not blow any fuse, since only the relay is on the circuit, not main starter current. holding it on might however, melt the starter windings. if the motor's armature can't turn there is no CEMF to limit the inrush current and it acts like a dead short for as long as the battery lasts