Hi Brucie, in my opinion,
You need to retard your timing further, presently your spark enters the engine at 27.5 BTDC, it needs to be there at 32 BTDC.
Flame burns at a certain speed, depending on temperature and octance rating ( go to Wikipedia, it has lots of answers ), the flame ignites the fuel BTDC so when the piston is at TDC the pressure will start to build at the correct time and product thermal expansion/push.
With the spark going in late, you will not get full power from your engine, but the fuel will still burn, usually in the exhaust pipe, or shortly thereafter ( BSA after burner ), often leaving quite a mess of carbon in your head and pipes.