Sounds like you are using an advance timing light which is good. You are correct, when you adjust the dial or push button, whichever type you have so that the timing is at 0 degrees at the balancer, the reading on the light is your timing. Sounds like your base timing is waaaay too advanced. Back it down to 13-15 degrees to start, with vacuum disconnected. Then make sure the mechanical advance is working(i have a feeling the weights may be stuck out)rev the engine to about 2k and see what the timing goes to. If it doesn't move at all then you have a mechanical advance problem. Need to solve that first and then continue on.
