My thoughts:
34-36 degrees total timing sounds reasonable, 40 sounds scary.
In a normal distributor, the full timing is usually in by 3000 rpm or sooner; and it sounds like you'll be above that. So my vote would be locked timing for simplicity and repeatability. The only downside might be hard starting if your battery and starter aren't up to it.
All that assumes you don't have vacuum advance. If you do, having the mechanical advance locked would give you too much at low rpm.
Eric
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