Heffay, are you static timing to the advance marks? I haven't figured a way to hold the advancer open in order to static time a Dyna S so I always use a timing light. With the Dyna set to the advance marks I usually end up a few degrees advanced at "F" which is no big deal.
The 1&4 and 2&3 pickups have some adjustment room in them, but not much. Is it possible to move them to get the adjustment you need?
A clockwise spin of the plate retards the timing, counter-clockwise advances it. Which direction are you running out of room?
Are you installing this ignition for the first time, or is this a developing problem on a old ignition?Something is amiss if you're considering drilling the plate. Either timing method, sticky advancer unit, or defective ignition. Hopefully something simple
EDIT: Just realized that you're probably fitting this to your cb400. I'm not familiar with the Dyna S that fits your bike(DYDS1-1) but I assume it's the same animal as the one for cb500-550-750(DYDS1-2)