Timing is easy.
Just place the crank arm vertically. (straight up or straight down)
Then set set the eccentric so the high point is extended horizontally all the way forward or all the way back.
It is just a matter of having the eccentric 90 degrees to the crank shaft.
Regarding that screw on the side, it should be tight and it serves only to hold the outside disc in place which is just there to keep the eccentric straps from falling off.
Gil
I tried to mess with timing and the noise never improved it only got worse. I might have caused damage to the cylinder wall, I ran it purposely out of time to see how it ran and it ran very rough. Then, I set it back to how it was. It’s only louder now. lol. I guess I learn with a cheap one instead of an expensive one.
You can’t damage the cylinder wall by changing the timing. You are way overthinking most of this. The reason the engine knocks with the governor hooked up is because there is probably some play in the connecting rod bearing at the crank pin. Most of these engines are a little sloppy in that area. With a load on the engine, it will knock. With no load, it will not, unless it is decelerating rapidly.

I know I'm overthinking it haha