What exactly does this do.. I know it basically virtually increases the kv of the motor, but can anyone explain how/why.. and its effects on the esc and motor. I've searched but have been unable to find an explanation that goes more in depth than +32 timing will add about +50kv to your motor.

As you up the timing you tend to run hotter as well, so you have to balance against that. It will give you more top end.. but some tracks never see the top end unless they have a good long straight. Add to that the timing option on the ESC and the ability to rotate the sensor side of the motor endbell you can end up with some very out of hand settings.

Just take your time with any changes and watch the temps. It is a race, not a cookoff