I have heard about this vacuum method for setting timing, but I've never seen it done. What is the procedure?
Collectively, the combination of throttle setting, ignition timing, compression, fuel mixture and all the other dynamics that occur with a running engine will produce a given manifold (vacuum) pressure. Things like air temperature and pressure can significantly alter these outcomes on any given day.
For our purposes the ideal vacuum reading for an idling engine is around the 22" mark, moving the timing or mixture will change this number and worn engines might struggle to get to there.
There are some factors which could lead to detonation if manifold pressure gets too high, particularly if you've got a high compression engine or performance cam and if you are contemplating racing or running full throttle for extended periods, that's why in my previous statement I recommend going for a drive after setting the timing to listen for pinging; find a good hill and put your boot into it..
I have a standard S1 with 1600 running on 95 octane and find it likes about 20" at idle, any more and it will ping at high engine loads.
Whilst years ago manufacturers specified a number for timing at idle, the fuels we use today are pretty far removed from back then, our distributors are probably quite a bit off from factory specs just to put a few other variables into the mix, that's why I find it's better to set timing by vacuum rather than specific numbers.