Crazy Timing Or Computer Issues?

Ok... first im new here, and have a 1995 5.0 with a vortech supercharger with 6-7# boost

I recently was having some issues

It would not start after driving, and it seemed like the battery was dead or not much charge. After i let it sit a couple min it would start, but i noticed a little puff of smoke under the hood. So is started checking it out, and noticed the icm was smoking? So got me thinking a ground issue, sure enough the ground off the battery that is grounded on the engine, was cut in half, rubbed against one of the pulleys. So i fixed the ground issue. But now i am noticing a surging.. i pulled the spout just for the heck of it to check the timing, and it idles fine with the spout pulled?
Could this be a computer issue now? Or did the ground issue fry the icm? OR?

So while i noticed this pulled spout idle, i decided to mess with the timing, i turned the timing back to where it is at 0 with the spout in and it seems to be idling a tad low (but not much) but is idling without any surging. i drive around the block and warmed it up real good and it seemed to start over and over so assume the icm is good. it seems to have good power as well. where i would think this low on timing would be dead slow
How can this be? i have always ran this car with the timing advanced with spout pulled at about 7-8 or so and use the timing retard knob and set it to 1.
This isnt making much sense to me, so any help is very much appreciated.

little more history, the car is ran with the vortech setup, fuel pump, fmu..

Thanks I'll check it out. But since the problem seemed to all start when the ground was cut and the icm smoked I had wondered if I would be chasing my tail looking everywhere to find this problem when it made me think computer short or something like that since I wasn't grounded properly.
Also- I have never seen a car want to run best at 2* with computer advanced spout plugged in.
That would be -6* or so with spout pulled.