You MUST insert a jumper across T(E)1 and E1 in the diagnostic box when setting/checking the timing. Additionally, NO CODES can be present, the throttle MUST be fully closed and the A/C MUST be off... and the engine needs to be at normal operating temp. The timing is supposed to be at 10 degrees BTDC, the ECU will advance it further based on sensor feed back, it's not an old Chevy, advancing it further yourself will actually do NOTHING.
Here's the process from the Toyota Service and Repair Manual:
http://www.cygnusx1.net/Supra/Librar...aspx?S=IG&P=20
And yes, from a cold start the car will usually be quite rich... it runs richer on purpose.