I have this engine and replaced the ignition before I flew it, With the Melody IG it was a bear to start the first time. Checked the timing and it was way off just like yours. I got it close as I could and it was a bit better, but I still went ahead and replaced it with a RcExcel ignition. The starting is now a lot better and I now just have to better set the carb.
This is the IG that I am now using

http://www.agaperacingandhobby.com/v...?productid=412