Retarding the valve timing will raise the rpm at which the engine reaches it's power, whereas advancing the valve timing will lower the rpm for the "power band". The best shortcut for finding the ideal setting for any engine is as follows:
Hook up a compression gauge to the engine once you've advanced or retarded the cam. With the throttle in a locked open position, move the cam timing around until you find the highest cranking pressure on the gauge. In most cases, this means that the cam is installed in the best position.
Take care,
-Chris
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