so yeah I have a digital timing light. Hook its up to #1. go under the dash on passenger side near blower motor you will find a brown wire(locations vary), disconnect it. adjust the timing light till you get a solid line and take a reading. Then loosen the distributor hold down clamp and gently rotate the cap I think clockwise to advance. You will find out quick as it will run like crap. Some people adjust it by just listening to when the engine is purring perfect. When you rotate the cap and tape another reading with the light the line will have moved some and you just keep going from there. Once you plug the electronic spark advance back in and put the timing gun on the dampener again the mark will be all over the place, this is normal because the computer is advancing the timing. You only need to set the base timing. from my experience watching knock counts on my laptop 0* degrees has the least knocks. I run a jet chip which increases the spark advance even more so in my case 0* is best I believe.
Idle sounds a little high to me. Maybe adjusting the timing will calm it down some. report back.