The timing is set at full throttle at 30 degrees btdc. Then it should gradually retard as you lower the engine speed and be close to tdc at low idle rpm of about 500. If it doesn't respond that way you need to repair the advance mechanism in the distributor. It does not have to be fully retarded to tdc if it runs ok at low rpm and the static timming (engine not running) is at tdc which is checked by seeing when the points just start to open. A worn distributor will normally advance way to early and the timing will bounce around back and forth. If you try to set the timing with the timing light only at low speed it may very well already be partially advanced and therefore your top end will be late and it is the top end that you need to be concerned with. With todays lower octane gasoline you may want to back off the top end timing a few degrees if you are pulling it hard and long. If you have good ears you can hear a ping and adjust accordingly but I havent't heard a ping if over 50 years.
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