Your timing setup is fine, very close to mine (18 initial, 38 @ 2000 rpm and 55 with vacuum advance).
Your car will run cooler, smoother and get 20 to 25% better mileage using the vacuum advance, there is no good reason not to if you drive on the street.
Your car will run cooler, smoother and get 20 to 25% better mileage using the vacuum advance, there is no good reason not to if you drive on the street.