Looking for tune-up advice

[1973 AutoStik Albie]

I have a 1973 Standard Beetle with the Auto-Stick transmission. It has about 42,000 original miles on it. I am the second owner; it was bought new by my mother-in-law. In 2009 it was given to me after a disastrous tune-up at her local VW dealership. Needless to say, the technician did not understand points or carburetors. Somehow he destroyed the carburetor and it was replaced. It was not the correct carburetor as it was not designed for the auto-stick. The distributor was a mess also as it looked like he tried to adjust the points with a hammer and punch. It has the distributor with two vacuum ports. The retard port is disconnected. According to the manual I have, the timing should be 5 degrees ATDC. This sounds so wrong to me, so I am trying to get some good tune information. I just installed a Holley pressure regulator because the carburetor was unresponsive to adjustments. I found the fuel pressure was 4.25 psi. It is now around 2.6 psi. The carb is responding now but the bug still lacks the power it should have. The timing is now set at 5 BTDC and it is better but I want to get it running better without hurting it. What is the proper approach for this model? I appreciate any information some VW experts can provide.