The engine may be equipped with the "thunderbolt IV" ignition system. This can be identified by the ignition control module with knock sensor that is mounted to the distributor. The IV sysem uses the same dist. cap as the older more familiar Mercruiser HEI. The T-bolt IV sytem has a "MBT" or mean best timing circuit which automatically adjusts timing to current load conditions. In order to set base timing you have to disable that feature. If you have this type of system look for a PURPLE/WHITE lead near the distributor, it should be covered but not connected to anything. This is called "lead 13" which when connected to a good ground will override the system and put it in base timing mode. You can then set the timing from there.
MPI says you need the scan tool !!