YES!! Got it started. Question on setting timing, etc

Hey everyone, thanks for all your help. I could not have done it without your help!!! Now that the car will start, (did it a few times np), a bit rough none the less, I need to resolve a few tuning pieces.

The car starts right up, but is pretty rough, exhaust is very "gassy" smelling, and the exhaust downtubes are REALLY hot right away just past the shorty headers and the O2 sensors.

I did confirm #1 piston at the top of the combustion stroke, timing mark at TDC (O degrees), with the distributor stabbed at #1 cyl. wire.

Here is the question(s) part:

1. I was a twit and put 10 gallons of 86 octane fuel. (just was not thinking ), so knowing that I will be using 91 octane after the 10 gals is gone, what should I set the base timing at? I was going to start with 12*, and is that at idle? What RPM? The cam seems pretty lopey??

2. After running it for just about a minute, a couple of times, all the moly lube is wiping off the internals. Can this cause problems for my first 30 minutes of "break in". Sitting in the drive?

3. Can I ruin my AOD if it is just sitting in park for the initial work if I don't have the TV cable set correctly? Or is that just a concern for driving it?

Thanks for the knowledge; and some info you might need: 91 5.0, 73mm MAF Meter, 70mm TB, ported Explorer intake, AFR 165 heads, 1.6 RR's, Comp Cams XE270 HR (512 lift), stock bottom end, built AOD, shorty headers 2.5" exhaust, H-Pipe, Dynomax Super turbo's.