SPOUT is just a little gray plastic plug that is nothing more than a jumper. On an sn with the original harness, it is over kind of between the airbox and the fender, right by the MAF. It just dangles there.
Just pull it out to remove it.
To set the timing:
Allow car to reach operating temp
Start car (may need to fiddle with throttle body if base timing is off in order to get car to run)
Loosen distributor hold down bolt
Point timing light at balancer
Factory setting is 10 BTDC. SO...on a plain-Jane timing light, that simply flashes in-sync with the plug firing, it should flash at 10 BTDC...
Turn distributor (don't wrench on the cap - actually turn the distributor) to get desired timing
Tighten hold down bolt
Shut off car
Now, I don't know what your build is designed for. If you have a high compression engine, you may have different octane requirements...
If the engine is built to run on 87 octane fuel, then you want the most advance that you can have without any pinging on 87 octane fuel. Try 14, see if it pings. If not, you may even try 16...I doubt it, but you might try it...if it does ping, just back it down a degree or two until it stops pinging under load.
Now, ultimately, whatever octane you are using, you want the most timing for that octane that you can run without ping. BUT, DO NOT USE HIGHER OCTANE JUST TO GET MORE TIMING...that is useless. Use higher octane if your engine build requires it, but other than that stick with 87...
2006 GT - Vortech polished w/ intercooler, Eibach suspension, Hurst short-throw, some other goodies - tuned by Paul's High Performance. It moves...
and it collects dust admirably while parked for repairs in the garage...
SOLD - 1995 Black Mustang GT, AODE. Loved it, but I had to let it go...