please help on 1995 Mercury Mystique

how do you set the timing,and why does cylinder 1 and 3 have oil on spark plugs bad

2 answers
Your ignition is controlled by the PCM and there is no adjustment if the timing belt is installed correctly
Here are the instructions for the timing belt... http://bit.ly/ksmv

The oil on your plugs depends on which side has the oil. If the oil is on the spark side, that could be your oil control rings or valve seals allowing oil to contaminate the plugs. If it is on the insulator (where the wires connect to the plug) this could be your valve cover gaskets leaking oil into the spark plug galleys.
The oil may be due to failing piston rings, have a mechanic do a compression test...I think you'll have your answer (as much as you'll hate to hear it).