Thats good news. We have E10. Ethanol-free is avaliable in a few places but hard to find. I loose aprox 10% power and 10% mpg. I have to change the mixture and timing for the different fuels so I just use the E10.
I would just set the timing to 8 deg (3 + 5) and drive it to see how it does. If every thing seems to be OK then try 13 deg. You can go higher but I wouldn't go over 15 deg. Then choose the one you like the best in terms of idle, mileage, power, and smoothness.
Now that you have a timing light, check the mechanical advange and vacuum advance. Disconnect the vacuum advance. Raise the rpm to about 2000 and see what the timing is. It should be maybe 20 deg or so. I don't know what it will be for your car but it should advance some. Now re-connect the vacuum and do the same thing and you should see even higher numbers. Maybe 40 deg or so. I don't know what either of these readings will be but as long as they are changing when you rev the engine then we know they are working.

PaulM

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84 500 SEL (307,xxx miles)