Some timing lights won't work right with an MSD.
I think the dial back type are worse in some cases.
I like a plain timing light with timing tape or degeed balancer.
Here is a quote from the MSD website:
If your timing seems to be jumping all over the place, check the following items:
* What kind of timing light are you using? Many lights have trouble reading the MSD's capacitive discharge multiple sparks. Dial back timing lights are not recommended. Try another non-adjustable light and check the timing again. MSD offers a Timing Light, PN 8990.
* Make sure you are not using Solid Core wires.
* Inspect the routing of the Magnetic Pickup Harness. It should be routed clear of the coil primary wires and plug wires. It is best to route it along a ground plain such as the firewall, frame or engine block to form a shield around it.
* Check the polarity of the magnetic pickup wires of the distributor. Reverse the connectors and check the timing again. The correct polarity is whichever connection gives the most retarded timing.
* On Chevrolet engines, if the timing is retarding 10 - 20 degrees inspect for cam-walk. This is especially prevalent on engines with a chrome or stock timing chain cover that is actually bowing forward allowing the cam to "walk".