I bought a 96 Integra Ls motor off of CL and It runs fine. Swapped it into an EF, but that doesn't matter. I am looking to increase performance and the distributor is already advanced as much as possible like so: What would putting it back to the neutral or retarded possition do?

 

if your distributor is advanced all the way, somethings wrong. check your valve timing to see that it's not off a tooth

 

reducing ignition timing beyond factory settings can make for a rough idle, reduced power, and increased fuel consumption.

Aren't you getting ping with full advance? You running premium?