Carl, that joker was around my shop just the other day. I had to go behind him too

re. smoothness. My 216 is pretty smooth, so smooth if it wasn't clacking the valves I wouldn't know it was running. well, that and the drops of oil underneath it

re. distributer, turn it so the points are just about to open but are still closed.
Disconnect the coil lead to the points, connect up either a continuity checker or OHM meter - black lead to ground - red lead to where the coil lead connected to the points, wiggle the rotor button, not around but side to side as Jerry indicated. If you see the meter change state or the light go on/off you've got worn bushings.
Does the dist wobble around when the engine is running?