A 5º bump to the base timing is NOTHING.... sheesh. The way you reacted to that, you'd $h!t if you saw mine.
Ignition timing isn't your problem although the mechanical timing may be off... Not the most fun thing to check and reset. Do not go by the harmonic damper unless you verify it's accurate. They can slip over the years putting the timing indicators out of alignment and thus give you a false timing reading. Mine is off by only about 2º but I've seen one that was off by just under 10º.
I'm not saying he doesn't know these cars well, but even with a mentor, double check everything the two of you do to the car... he should know that +5º isn't an issue on even moderately modified 7Ms. Hell the N/A's don't really wake up until 17º - 20ºBTDC.
Hey Jeeves, I sent you a PM. Long time no see. I suspect part of the inconsistent AFR with my 7M-GE were due to the VAF... ick... and possibly a clogged injector. I don't mind running with a lean idle though... saves a tiny bit of gas and it is stable. I thought you were running PTT in your setup?
EDIT: With the TCCS controlling my idle I'd see a rather consistent fluctuation from the upper 16's to the the upper 13's. With PTT it stays in the mid 15's.