Run a comp. test if you havn't already. If that is o.k. pull the valve cover. Check for a broken valve spring. Look at the valves, when closed they should all be about the same heigth. If one is up higher then the rest it can indicate a recessed valve seat, which often doesnt show up on a comp. test. To set the points, turn the engine to get the rubbing block on the high point on the cam on the dist. shaft. Put a .019 feeler gauge between them & adjust the points to get a drag on the gauge. It is correct for the point to move as you make the adjustment. Tighten the retaining screw down when you get the adjustment. Unless the shaft is bent or the bushings worn the dist would not cause this problem.
