Date registered: Jun 2006
Vehicle: 2003 230 Kompressor, 1970 280SL, 1991 300SL, 1970 SEL Limo
Location: San Diego
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Mike D. is correct. The system you have have a 70 deg cel grounding switch. It's located on the engine block just below the injection pump. When the car is cold, it grounds the switch, in turn, grounding the 2-way valve letting the advance activate. Once warmed up, everything should be fine.
If you are burning points, make sure you have the correct inline resistor. (Make sure it's working)
Fluctuation in timing could be a number of things. Is your distributor badly worn?
Does your car still have the trasistorized ignition?
Also, to answer your question on when they moved the vacuum to after the throttle body, I'm not really sure. But I think it happened mid to late 1969. (I have seen 69's with both set-ups) It was a real weird time for car manufacturers and emissions controls. Designs changed from year to year in the early 70's.
Pertronics is a good system. With the Pertronics you can bypass the transistorized system, keeping only the .6 resistor.