Dusterdude,
I'll try not to make this too long.
The first thing to remember about nitrous is it the same as normally aspirated, meaning if 12.8-13.2 afr is where your engine makes it's best power, so it will with nitrous. You are not forcing the air-fuel mixture in under pressure like turbocharging. You are just introducing more fuel and oxygen to the engine than atmospheric pressure does on its own. The chemical reaction is still the same.
The car guys are way ahead of us on nitrous use. They found out several years ago that running rich mixtures (too cool the cylinder down and reduce detonation) was detrimental. They didn't get the horsepower increase they were expecting so they would advance the timing to give the richer mixture more time to burn. What they would do is cause detonation, rattle the piston rings unseating them, letting oil into the combustion chambers, and detonating even worse. Oil in the chamber is a huge no-no, as I read the octane rating of oil is in the neighborhood of 45! So mix that with the gas and your octane rating drops probably into the below 70 range. Instant burned pistons. You can see the problem with that.
So, tune the nitrous and fuel for optimum afr and dial the timing down. The only downside is losing a few horsepower if you go too far. How far? Start with more than you think you need. If you know someone who takes only 2 degrees per 50 hp, start YOUR engine with at least twice that. I remove more than that myself. Now remember, I'm not running a heads-up class, so I won't run it on the ragged edge. If I did run such a class, I would start with pulling more than enough timing and add 1 degree back at a time and record my mph. Mph is horsepower. If I add 1 or 2 degrees back in and the mph picks up, I'll add another. If the mph doesn't improve, then you are working the engine against itself BTDC on the compression stroke. It's not as efficienct.
You also need to learn to read the spark plug. There are several good articles out there on how to do this, but really, you have to just do it. It helps to have someone who knows how to help you. I took a set of plugs one time to George Bryce at a AMA-Dragbike race in Valdosta to show him (he offered) and told me they looked too lean. I appreciated his advice ( I kept my tuneup the same as I was running better than ever
), but people are willing to help. I know this was long winded, but there is alot of info to share. I will try to answer anyone's questions too the best of my knowledge. Thanks.