When you go to put the distributor in you dont want it pointing at #1. You want it to go to #1 when you set the distributor in. Pointing at #1 you should have set it the middle of adjustment and go from there. I hope you have a timing light? Even a good ear is usually off.
Another thing. If you adjust your valves Ive had much better results setting them .007 on the intake and .011 on the exhaust. And try 7BTDC for timing.
Where you located?
