In general you shouldn't need ANY retard at such low power settings.
Trying to error on the side of caution, I used 2 deg. retard with a 50 hp shot with good results but did not spray off the line in first gear. I have the PC Ignition Module so I can program the ignition retard/advance anywhere throughout the rpm in 500rpm steps. I am currently jetted for 75hp.
Please provide the following details so I can be more specific;
Compression ratio

R Big Bore(110") steel liners with 10.25/1 cr forge pistons
Existing timing : Adjustible + - 10 deg. currently -2deg. from stock.
Plug grade : one step colder than stock, trimmed back electrode as per your book.
Fuel type : Sunoco Race Fuel CA Phase 3 unleaded 100 R+M/2 Octane
A picture of the installation of the nitrous system : I have the Street Blaster 50 w/twin fuel jets and a an adjustible fuel pressure regulator (nice)

http://i296.photobucket.com/albums/mm177/yamhamr/nitrouswarrior001.jpg[/img]
Type of progressive : Maxextreme Race
Pumped or gravity fed fuel :Fuel Injected 50 psi upgraded to 255 lph pump.