Timing is supposed to be line to line - lining up the IP marks with the timing cover. After 30K miles the timing chain has stretched so advance becomes necessary.
I feel ideal timing on a factory setup has black smoke with the cold advance on under heavy throttle that clears when the cold advance goes off. Slight bump in fuel, over 1/4 turn, got me these results. This was with a slight advance from the line.
http://www.oliverdiesel.com/tech/timing.htm
To get real crazy you mess with the light load advance adjustment screw on the side of the pump. The cam retards timing with more throttle.
Further adjustments to the pump curve are done by adjusting the transfer pump pressure screw. 1/4 turn in and your truck will literary take off over 2000 RPM. Rattles like hell with cold advance on over 2K. Also gives you slightly more fuel from higher charge circuit pressure.
More advance makes more power. More advance means more pressure on the lower end and higher NOx emissions. Possible black smoke increase.
Pop pressure and the lighting delay of the fuel also affect timing.