The ESA is not a spark advancer and if the Seloc says that, more proof that those manuals aren't worth the paper they are printed on.
Any engine that has a dog clutch like the OMC Cobra needs some way to interrupt the spark while shifting. On a mercruiser, the switch momentarily grounds the negative side of the coil, on yours, it does the same thing but pulses it electronically.
Here is a thread where DonS describes the wiring for the distributor
http://forums.iboats.com/showthread.php?t=287471
http://forums.iboats.com/showthread.php?t=489940
The vacuum advance is useless on a boat. You probably aren't getting full advance with your setup now so a true marine distributor will have the correct advance curve. The distributor you have now is also an explosion hazard.