Hi Christ,
You have me confused so please let me lay out the ESC adjustments as I understand them.
The governor has a HI RPM range and a LOW RPM range. The ranges are there for the difference between many pole outrunners and low pole count inrunners. I think you are in LOW range, which is why you never see more than 7200 RPM.
The Timing adjustment is something else entirely. The timing on a Dc electric motor, both brushed and brushless, is naturally retatrded compared to the ideal, because the motor windings are inductive, and it takes time for the current to build to its peak value. The guys with brushed motors would actually rotate the end bell of the motor that carried the brushes in order to add timing advance, and center the actual current pulse in time to co-incide with the magnetic pole faces. With brushless motors, it's just software to achieve the same thing. Actually, efficiency, input power and output power will all peak at the ideal advance for a given load. You probably want to stick to medium or low advance with an outrunner. The Castles seem happy in medium, all the time.
More importantly, take the ESC out of governor mode and put it back into fixed-throttle mode. Then check that the motor and battery combo is capable of achieving the RPM you want. If it doesn't, then the motor/prop/battery combination is wrong. In this setup, the desired RPM should happen with maybe 3/4 to 7/8 throttle, or 1.7 to 1.85 milliseconds of control pulse width. After verifying that the prop is an appropriate load put the ESC back in the high range governor mode and see if you can adjust to the desired RPM. At least you know the motor is capable of getting there.
Please remind me, what motor are you running, and what is its Kv?
Hope I helped,
Dean