Idle questions

Start your timing out at 5* BTDC and you can even advance it as far as 10* as long as it's not pinging. TDC will not give you the driveability or mileage that you'll get if it's advanced by a little bit.

Sounds like you might need a valve adjustment, which is nice since it's a free fix (other than your time) as long as your valve cover gasket doesn't come apart. Go over to slantsix.org and check out the sticky FAQ thread on the engine forum. There is a detailed description on how to properly adjust the valves.