You need to slacken off the TPS bolts a fair bit and persist with turning it left/right until you get the full range of possible readings. It will eventually show them all, you just need to keep at it.
The TPS is driven off the throttle plate spindle which is why tweaking the idle adjuster will affect the TPS.
The ignition curve is in part influenced by the signals sent from the TPS to the ECU. Setting the TPS so that the needle reads above 5k rpm effectively advances the ignition below 7k rpm or thereabouts. Max advance is 55 deg BTDC at around those rpm, maybe a shade less - I forget.
Remember that the timing from the factory is slightly retarded to cope with lower octane fuels in some countries. Advancing it a couple of degrees via the TPS position is often beneficial on bikes run on UK regular unleaded.
I set the TPS so that the needle bounces between 5 - 10k rpm with the idle set at 1150 - 1200rpm.
You can also use the dynamic (Ivan's) method of setting the TPS with the engine running and that will give a good result but if you check using the tacho afterwards, you will find that the reading is 10k rpm or somewhere between 5 & 10k. This is why I opt for the 5-10k bounce from the outset ... saves annoying the neighbours running the bike at 3 - 4k rpm while doing the adjustment.