Checking and Adjusting Timing 2001 Avalon

Followed the Toyota FSM for checking the ignition timing and had some questions:

They tell you to put the timing light pickup on the lead wire to the #1 plug, but for starters, I can't find in the manual which one is the #1. Second, they don't tell you which of the several wires going to that coil pack to use. I used a black wire with a white stripe which at least made the timing light work...it was really the only one accessible.

I checked the timing using the front plug on the passenger side (though it had a "2" stamped into the valve cover next to it, so I wonder if this is actually #2). The timing with DLC1 jumped was quite retarded--couldn't tell how much becuase it was too far off the mark, but more than 15*.

So:

1. Did I do this correctly? (correct wire used and correct plug)
2. If so, my timing is way off. How do I go about adjusting it? FSM does not say.

If the timing is controlled entirely by the ECM and no adjustment is possible, then what might be the cause of the exessive retardation? Manual doesn't address that either.