Delete the governor intermediate spring to gain some additional fueling, to make your fueling useful after 5000rpm you will need to increase DYNAMIC timing, to help reduce INJECTION and IGNITION lag.
The bottom picture is of an electric cold start timing advance mechanism.
Sorry, but it is not! Want your are taking about is on the other side.
It is a selenoïd that takes the fuel pressure from the top of the pump and report it in the timing piston chamber to counterbalance pressure and avoid timing advance. It only works when there is pressure inside the pump. -If 0 volt is applied, the pressure is passing inside the piston chamber and there will be no timing advance -If 12 volts is applied, the pressure is NOT passing (you always want 12volts there)
I can go through and give all the bosch technical names if anyone is interested. Also we need to put a disclaimer on this, there are few crucial parts of DISSASEMBLY not noted here that are integral to putting the pump together without the proper tools/equipment. IF you just take it apart and try to put it back together based on these pictures you are gonna be in for a dissapoinment. Also note that this is a ghetto rebuild, many of these parts should not be reused, but can be. Its a lot like tearing apart an engine and just re ringing it and maybe putting new bearings in. I can try to throw some tips out as I put the names in, but to do this right I would need to take pictures of the dissasembly process, which is almost as important as reassembly. I've got 4 pumps that I have completely dissambled and rebuilt that are running and driving perfectly, but the 2 pumps before those 4 good ones... well, lets just say I learned the hard way