You should use a neon timing light to set the timing, and you should set it at maximum advance. If it doesn't return to the fixed advance setting at idle, you have an advance mechanism problem. Distributor cam lube is available - you can Google it. I've been using the same tube since about 1973 and there's enough left to last 'til at least the year 3000. In your case, the cotton wool wick is better off with liquid oil, and you should refresh it every so often - with only a drop. It doesn't have to contact the cam all the way 'round, just the high part - it will wipe off onto the cam and get wiped off onto the point set rubbing blocks, which is the intent of the system.