Ken---The distributor advance weights "fly out" as the lower part of the
shaft speeds up with engine rpm. This action further moves the upper,
points-opening cam in a counterclockwise direction, advancing the
timing. You should be able to move the weights manually, the way you
tried. Liberally douse this area with your favorite penetrant oil, and
try again. If not successful, remove the dist. for better access to this
area and clean thru disassembly of the parts.
If you're not comfortable with Bentley's description, Lucas has its own
detailed book covering this.
Timing not advancing, as you found, would certainly be a good reason for
your poor mileage.
Dick
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