The 20# indicator should be flush with the point where the rod enters the base, when the rod is all the way in. I think you're saying that yours is like that. (There's no sticker/decal Dan, the numbers are stamped right into the steel rod).
The weight will fit onto the rod either way when you assemble it (right side up or upside down). The knob should be at the bottom end of the weight, closer to the rotator. Is it?
Note that the picture at the bottom of page 3 in the manual showing the weight about to be put on the rod is deceptive, because it looks like they're putting it on upside down, but the text is clear as to which way it goes.
It should look like it does in this photo (knob at the bottom of the weight):
There's no part number or other markings on the weight on mine.
I don't know the weight of the weight (I don't have an accurate scale to measure it), but it's 2.695" in diameter and 3.050" in length.
I did check the tension on mine at one point to confirm I had mine all together right, using the Gamma calibrator, and mine was absolutely dead-nuts on.
I still think your scale sounds fishy (lol). The spring in something as old as that must be weaker than it once was, making it read too high.
I suppose it's possible that the guy you bought it from gave you the wrong part/weight, but at least now you can check its dimensions to see.
Not sure what else to suggest or offer. There's not a lot to it, just geometry and gravity--nothing to adjust or calibrate beyond getting it assembled correctly.
Like Dan said, maybe
Gamma Tech will have something to offer or suggest.