I gotta say, I'm thoroughly confused by this thread and the numbers mentioned.
What's does "it's retarded @31.5* off stock" mean? 31.5* retarded off stock should mean your firing at 4.5* after TDC.
In this case, shouldn't advancing the timing create a LARGER number?
So if the saw is now at 31.5, it's advanced more than the 27* stock reading. Filing the key will increase the number and advance timing and create a spark that occurs more before TDC than without advance.
I'm probably just reading this wrong.
To the OP, did the coil automatically advance the timing at all from idle to WOT?
My 10mm is a beast with .020 off the key.