When you are setting initial (mechanical) timing, it WILL idle a bit rough, because you have the vac disconnected. You’re setting the timing for WOT, without the car actually BEING wide-open-throttle. However, when you hook up the vac advance, it should draw down and smooth right out - IF you are using manifold vacuum.
If you’re using timed vacuum, it will just continue to run rough, because you have no vac advance with the blades closed, using ported vacuum.
So what happens if you use ported vacuum and dial up the timing until it runs smooth? Well, think about it. Okay, you’re idling fine, on zero vacuum now. But as soon as you step on the gas a little bit, now your vacuum advance kicks in! Your car is now running way over-advanced. And guess what? It keeps running over-advanced as you begin to cruise down the highway at low RPMs too. You may not hear it pinging, because you’re probably running very light throttle. But you will be down on power, economy, and things in the combustion chamber will be getting HOT. It is very common for a car tuned this way to ‘diesel’ after you shut it off, because things in the combustion chamber are glowing, and even without a spark from the ignition, things light off anyway as fresh fuel and air continue to get fed to the cylinders.
There are two cases in which it is appropriate to use ported timing. One is for a concourse restoration of a '70s smog engine. Those cars typically had very retarded timing at idle, to deliberately dump extra unburnt air and fuel into the exhaust. It was intended to help the air injection system continue burning longer in the exhaust to clean up emissions, and to heat up the new catalytic converters that came later.
Of course, that was a really dumb idea, as burning the fuel inside the combustion chamber where it can actually do work is much better.
The other scenario where ported vacuum might be useful is for an engine that has so much overlap, the cam does not allow stable vacuum of any significant amount in the intake. In such a case, with the engine unable to idle properly at low RPMs, the vacuum in the manifold might be going as low as 6 lbs, but spiking to higher numbers. When you hook up a vacuum advance to that, the engine will surge as it cranks the timing up and down, making the idle problems even worse. A car in that state may not be able to idle at all, much less run right with an automatic transmission. Using ported vacuum for a car like that still has all the drawbacks and compromises listed above, but at least it doesn’t add to the ‘surging’ problem created by its savage cam. You’d still get the benefit of vacuum advance at part throttle, once you’re rolling and out of your idle circuit, but a lot of guys with the ‘hairy chested old-school’ approach to power just leave out vac advance completely, calling it a waste of time for a drag car like that.
Most modern racers find that vac advance helps even the meanest of engines, allowing crisper throttle response and tip-in, along with more controllable launches.
Generally speaking, ANY car that is ever driven on the street, where part throttle operation is used, will benefit from vacuum advance, and almost all of those will do best with manifold vacuum, if you want best driveability, economy, and power.