James,
I recently updated the tech manual section having to do with a points ignition system.
"As the engine spins the Distributor shaft, there is a 6 lobed cam mounted to the distributor shaft. Just off of the cam is a single set of breaker points that open and close by the distributor cam's contact with the point set(s). When the points are closed, they allow the coil to energize and store energy. When the points open, the stored energy is released as high voltage energy through the rotor, cap, the high tension wires to the spark plugs. How long the points stay closed is the 'dwell' or dwell angle.
At ordinary engine operating speeds, the points open and close a couple of hundred times per second, the exact number depending on the number of cylinders and the engine RPM. The points need to be closed for a appreciable time in order to build up the maximum magnetic flux in the ignition coil core.
The period of points closure is specified by the ignition system designer and is typically expressed as degrees of distributor rotation. In a six cylinder engine, the angle between each ignition cam lobe is 60° and the period of points closure or "DWELL" is usually a 30° to 35°.
Dwell is adjusted by setting the points gap to a specified distance at maximum opening. A narrower gap gives more dwell and a wider gap gives less. Taking it to extremes, excessive dwell means that the points close too soon after opening, cutting off the magnetic field collapse in the coil before it delivers all its energy. Too little dwell gives the magnetic flux insufficient time to build up to the maximum.
Both conditions give a weak spark which gets even weaker as the engine RPM rises and produces misfiring at normal operating speeds. The dwell, as well as spark plug gap, do have an effect on ignition timing.
The later the points open, the later the spark comes and retards the timing. The earlier the points open the sooner the spark comes and advances the timing. That is why TIMING IS THE LAST THING TO BE SET IN A TUNE UP. "
When you adjust timing with a strobe light you are fine tuning any advance or retard variance from the dwell angle. As the dwell angle changes (points wearing) timing also varies. You are seeing the the results of a failing distributor with the varying timing of your car at 3000 rpms.