Haven't been in here for a while.
I have a 90/92 Kota that I've put a H.P. 94 5.9 in. I've always set the timing to where it would barely ping under load so yesterday was the 1st time I ever put a inductive timing light on it mostly because I'm fixing to unleash some nitrous.
The under hood emission sticker on the 94 donor Ram truck says the idle timing should be set at 10 deg. before TDC. My shop manual says it should have the #one cylinder at TDC then adjust the distributer timing mark to the rotor because the ECU controls all ignition timing functions. The latter is how I've always done it then retard till barely ping.
Now that I've put a timing light on it I notice the timing mark is hunting considerably like 20 or 25 degrees. The distrbuter seems in good shape and the truck seems to run good so is this normal???

 

I cannot answer your question directly. I have an instruction sheet for manually setting fuel sync which is what you describe as setting #1@tdc etcetera. It is much easier to do with a computer, I have am eBay cheap MT2500 but my motor is stock. Try setting the sync with this or a computer and then take a peek with the timing light. I have no idea what correct timing is supposed to be for your veh. edit- setting the sync to positive range is what I am told give one more power. What this does is tells the injector when to fire. I forget how it is described but at 0 which is the factory setting it fires before exhaust is fully closed and intake is not yet fully open. going Pos sets it to fire when the intake is open. I think +3 is a max setting you want to try. I tried for 0 and could only get it to sit at +1 with my scantool.

Remove negative battery cable.
Pull the drivers side valve cover. Remove the distributor cap, but not the rotor. Remove all wires from the cap. Determine which terminal on the cap is number 1, and mark it CLEARLY, if it's a black cap with yellow paint, just something bright you can see well. Then, turn the engine so that BOTH valves are closed on number one cylinder, this is why I had you remove the valve cover. Once they both look closed, align the timing marks on the harmonic balancer so that the engine sits at TDC. Oh, remove all spark plugs before attempting to turn the engine around by hand. Use a 1.25" socket on a breaker bar, should turn the engine. Make sure the tranny is in neutral as well. Once the timing marks are lined up, go back now, and loosen the distributor hold down clamp. Turn the distributor so that the ROTOR lines up with the number 1 terminal you just marked on the cap. Don't rush it, you can get it basically perfect, and remember, the cap will fit on ONLY ONE WAY, so make sure it is lined up as if it were to go on. Once the rotor is lined up with no1 terminal, then TIGHTEN the distributor hold down clamp WELL. It uses a 1/2" wrench, you can fit a hand down there after you remove the air cleaner, as well as a box wrench or something like that, rachet won't fit, and if it does won't tighten it good enough. Then replace the cap, and all the spark plugs and spark plug wires. DO NOT HOOK UP THE NEGATIVE BATTERY CABLE YET! Next, put the key in the ignition and turn it to the "Run" position for 30 seconds, then the to the "start" position for 30 seconds, then back to run for 30 more seconds. Once that is done turn the key to the "Lock" position. Then hook up the negative battery cable, start it up. If you were careful and did it slowly, the fuel sync will be about 0 now, and should be okay to run now, as long as the catalytic converter is either gone or is not clogged. That is the proper way to set it without a scantool.
https://dodgeforum.com/forum/2nd-gen...-tuning-4.html