O.k. that is a massive improvement. Check your accelerator cable adjustment and throttle stop on the carb - make sure it's not loading the throttle. It is going to run on like crazy with idle that high (and it is...) You won't be able to set your timing advance with it revving it's head off. I have a tendency to not worry about a timing light other than using it as a diagnostic tool. I set the idle, then hold the rpm's @ 2000 and swing the distributor back and forth until I hit a 'sweet' spot and the rpm's jump by themselves, then retard the timing a touch (this allows for the engine vacuum under load and a bit of a buffer for crap fuel). Reason why I do this is due to the engine isn't driven at idle speed, it's normally running at 2k.
You are making good progress - once you have found the way to set the idle rpm it should be running like a champ