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Firstly the timing marks are a general purpose starting point. run ignition as far advanced as you can -without- it pinging. Be aware by installing electronic ignition you lose the abilty to start it with a flat battery.
Other things to check..
right grade of plugs fitted with right gap ( too small gap advances ignition)
make sure you are not running weak
do not worry about the blue smoke, it is just oil being sucked into teh combustion chamber on the overrun.. My 500 did it when new and after its first rebore....but oil level was fine...doesn't take much oil to make smoke.
and as has been mentioned, fuel grade.
Sometimes a sharp edge can cause a hot spot inside the combustion chamber to give pre-ignition. changing the timing wont affect that at all, and anyway it is a very rare condition.
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A wise man learns from his mistakes..
A genius learns from other peoples mistakes.
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