Timing Question
 

Can someone tell this novice what is adjusted when setting the timing?

you are "timing" the ignition spark in realtion to the position of the piston on the compression stroke. It is measured not in seconds but in Degrees. (360*in a full circle) And it is set in relation to the piston at TDC (top dead center). Usally a few degrees before TDC, it depends on the engine and the Camshaft specs.