Older Gravely's used a magneto and the timing could be adjusted. However, the shaft that opens the points on your Kohler engine may be gear driven from the crankshaft. If so, the timing is affected only by the gap in the points, and there is no other adjustment.
Your problem could be ignition-related, or it could be fuel-related. You can download service manuals (free) from
Kohler Engines: Owners & Service Manuals: Manuals & Maintenance
Fuel:
Did you adjust the carburetor?
Electrical:
Your spark plug fires when the points open. If the gap is too small, it will fire at the wrong time. If the gap is too wide, the points won't be closed long enough to charge the coil and you'll have a weak spark and it will fire at the wrong time.
When the points open, there is an arc across the gap. Over time this deposits metal from one side of the points to the other. That messes up the point gap. You can use a file or use emery cloth to smooth them up, or you could replace them.
There is a condensor (small metal cylinder) near the points which acts like an electronic sponge to dampen "back emf" (reverse voltage) which occurs when the points open. I doubt if that is your problem, because when it goes bad you probably wont' get any spark at all.
Another part of the ignition system is the coil. When the points are closed, current through the coil creates a magnetic field. When the points open, that field collapses and creates the spark on the secondary side of the coil which is connected to the spark plug. If the coil goes bad (e.g., internal windings short together), then the spark could be weak and misfiring could occur.
Finally, the wire from the coil to the spark plug could be bad. That could cause misfiring. If you have a way of measuring resistance (ohm-meter), the resistance in the wire should be 10,000 to 15,000 ohms per foot