that dial on the back is to adjust timing...the #'s are relevant to how many degrees btdc....turn it to 5, then set timing to that spot...ya dig?

Also....check the iac valve.....i think that could cause this type of issue.

 

na i dont see... i dont get the dial lol.

 

well lets say you wanted to check the total advance of the engine at 3800 rpms. so you could rev the engine up to that speed but likely the true advance if off the scale on the balancer/timing cover. so you turn the dial until the flash registers on the scale (usually you'd adjust it so the flash went to 0 deg on the balancer) then you could read what the dial says to see how much advance / retard you've dialed in on the timing light.
so basically anytime the timing won't show properly because it's too far advanced or retarded, you can adjust the dial on the light to find out what your timing is at.

 

OH, so when the timing mark is in the center of the balancer, then its timed at whatever the dial is at, right?

 

okay, after listening to it more, im thinking its an exhaust leak.

 

*update*
i took it to my dads mechanic (my dad talked him into doing a free inspection, theyre good friends) and he ran a compression check, near perfect. put a sniffer in the radiator, exhaust showed up. put the sniffer in the pipe, coolant fumes showed up. checked the oil - foamy and milky. my head gasket finally let go. after 20 years and 300,000 miles, the head gasket failed, just enough to make the engine run really rough. thats a damned good run if you ask me. so heres what we got currently. the truck is sitting outside my house waiting for my money to add up so i can get the engine rebuilt. my dads mechanic is going to rebuild it for 1400. so since its being rebuilt, im going to put an engine builder cam in it, a header, and im gonna look around for factory AC and have him put it in. for the time being im driving a 2001 RMS Titanic (aka ford expedition). im looking forward to having a fresh engine, ive never driven a FRESH 22RE. any thoughts of cams to put in?
what i dont understand is why the compression check didnt show anything.... any ideas why?