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if you have a timing gun this would be a good time to put it at 16° without the vacuum advanced plugged in and then plug the vacuum advanced into manifold vacuum. This allows something like 36° of timing once the engine starts. If you have ping then back it off a little and try again.
You don't need that no. You can just take the manifold vacuum and run it to the distributor. When cold the distributor pulls from ported vacuum. Then water neck is for when the temp reaches "225°" amount it will open a valve and allow manifold vacuum