Steve,
That sounds spot on to me
A little bit of slack in the cable ensures that the cam ring is in the fully ADVANCED position i.e. it is against the physical stop within the magneto and is not reliant on cable adjustment (in your original post you refer to this as being retarded, but it's actually ADVANCING the ignition - it's firing earlier when advanced). You should think of it in the way that you are advancing the spark (firing earlier) rather than advancing the the piston position in relation to the spark.
I've just been through an ignition timing performance with my GF. I set the timing to 30 degrees BTDC and when I strobed it the other cyclinder was firing at 25 degress (retarded in comparison). The fault lay with a badly machined repro cam ring which I've subsequently binned.
Hope this helps
Brian