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Set the ignition timing first
The ignition timing is what you are observing with a timing light. So, yes, it is the same thing.
Can you hear it when you rev up the engine without a load on the engine?
Are you timing it off of the balancer? Verify TDC with #1 piston all the way up. Remove the #1 plug and watch it hit tdc with a flash light or long piece of mechaincs wire etc. Verify the mark is TDC. Tell us how you are setting your timing.
No, you want to see it actually come all the way up before it goes back down. Don't confuse it with a positive stop.
spark knock is from timing being to far advanced just turn it down a bit and try her