"Does the GM HEI ignition works fine with the MS 2? Can we control the timing? "

Yes. The MS 2 is fully compadible with GM HEI ignition. You upgrade to a 7-pin HEI module (easy according to the MS people) and then you have full timing control from the MS unit. I've been looking over how to do this for a few months now and the second I can get an MS 2 I intend to convert my timing control.