"2.) shave 1/3 the width of the cast in flywheel key (from the right side of the key while looking at the back of the FW). You have to remove it from the correct side so that you can turn the fw counter clockwise 1/3 of the key width."
This is confusing at best,--it would be the right side if the key were "UP", but it would be the left side if the key were "DOWN", go with "CCW facing installed" and you are moving in the rite direction--in order to advance the timing, the "Flying" magnet on the flywheel needs to get to the coil "sooner" relative to the piston. I put up some pics of this, with an arrow showing where to file on the key. look at:
http://www.arboristsite.com/community/threads/thankyou-brad-re-201t-mods.258819/
Also, I've done 3 so far, the results were great, and once I rigged a mini degree wheel, I found that 6 degrees is probably ideal, but since this stuff cuts fast, i did file one around 7 and another at 8+. Neither me or my partner could tell which one was which, in fact the one that degreed at 7 ran the best, but it also was a bit newer than the other 2.