Incorrect Timing Adjustment causing heat issues?

It's possible they screwed it up.
You are correct that retarded timing can cause the engine to run hotter. It was done on purpose (at idle only) on CAP packages.
It will also lose umph or throttle resposne if the whole curve is retarded.
You are correct standard timing for 273 4 bbl should be around 10 * BTDC somewhere around 550-600 rpm. The rpm it is set at is VERY important.
Also the distributor you are using will make a difference on the advance above idle. So tell us what you have,
Absolutely. You may have been getting some pinging because of the advance but the distributor may be advancing too fast or too far. You will need to read up on that and check it out with a timing light.