No you don't have a problem according to the factory manual found in the "Factory Service Manual" thread at the top of the forum:
http://www.turboninjas.com/camry/eg1.pdf Pages EG1-18 and 19. With the timing adjusted to 10 deg BTDC and the jumper removed it should oscillate between 0 and 10 deg BTDC (step #4).
It's been a while since I've done a timing check but, could it be the case that
as you remove the jumper the timing jumps to 12-22 deg BTDC then it settles to 0-10 deg BTDC? I believe the RPM jumps simultaniously, then drops to normal indicating an advance.
Shootin from the hip you might try a new O2 sensor (if the timing adjustment didn't do it) for your lack of acceleration. Especially if it is the original sensor. The upstream sensor is the major player and as luck would have it, the easiest to change.