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I had this same issue as well. My under hood specification says 5 degrees, but in the manual I was using (Haynes) it says to verify that the timing readvances to 10-16 degrees once the system is restored to normal operation.
I set mine in accordance with this and experienced the same sluggishness and decreased fuel mileage that you did.
I went to investigate this further. The procedure I have in the Haynes manual tells me to "Jumper terminals E1 and T in the diagnostic connector". Upon a closer look, there is no wire in the diagnostic connector for the T terminal. I opened the connector and verified this. I don't know what is going on there.
Until I find a better answer, I am going to run mine at 14 degrees BTDC. Please update me if you find out any different and I will do the same.
Thanks!
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