Static timing stock is 12. 5°, or about 1. 25 mm plunger lift.
Jumping one tooth gives 10° additional timing.
Bumping the pump 1/8" is approximately 3° advance.
Stock VE max dynamic timing via the KSB is 21 - 22°, or 2. 6 mm.
M&H dynamic timing spacer adds +10° dynamic timing, or 6. 4 mm at 1500 rpm pump speed, or 3000 rpm engine speed.
With reference to letters on the gear, marks set at E and O are stock. Set at C and O is one tooth advanced. To advance the timing, the gear should be bumped one tooth clockwise when facing the engine.
One reason to advance timing, is because in the OEM configuration, timing was set as a mediocre comprimise with respect to NOx and PM emissions, and was not necessarily optimized for BSFC. So, by advancing timing (some amount), the BSFC of the engine can be increased, at the expense of higher NOx.
The other reason for increasing timing, is to counter combustion phasing being pushed later and later from the addition of more fuel. Thus, the more fuel you add, the more you have to advance timing. This is seen by the guys running 400, 500, 600 hp that are jumped up to two teeth, pump to the head, KSB hotwired, etc.