Now if I just had some good advice about your high CO readings...
The original poster retarded his timing to correct his CO readings.
Most emissions control manuals will tell you that retarding your timing will have no effect on tailpipe CO readings.
I've found that's not always the case, retarding your timing can cause the exhaust temps in your exhaust system to run hotter.
That higher exhaust temp can act like an extra CAT in your exhaust system, helping to burn off excess CO before it makes it's way out of your tail pipe.
One more thing to remember, and this is very important, emission testing adjustments are always a balancing act.
Making changes to correct one value that's caused you to fail your test, Be it a change to help correct for CO, can effect other emission testing values.
So if you make a change to your timing, higher, or lower engine idle speed, or running to rich, or to lean of a air fuel mixture can cause your other emission testing values (CO, HC, NOx, and O2) to fall outside of what would be a passing amount.