First off;
This is an eight year old thread...
1987 was the last year for Carb's.
There is no spout with a carb and DSII system.
10 degrees is stock, I'm at 12 with no problems.
If you have an issue with knock, point the finger at yourself for removing the EGR spacer.
As for advance, just get yourself a Crane Cams adjustable advance unit and follow the instructions.