I think your reading the timing incorrect. I think it should be around 8-10 intial.32 is way too high. When it bogs or hesitates does it backfire or just not take the fuel? Have you checked for an exhaust restriction? Converter plugged? What is your vacuum reading at idle and 2000 rpm? Also what do the plugs look like? and have you look at fuel pressure while under a load not just at idle? How does it run at highway speeds?