Have you done a compression test and a valve adjustment? Actually, the valves should be adjusted before checking compression, not after. A few tight valves will make an engine run really rough, even with a good ignition system and correct timing. Exact clearance measurements aren't vital right now- - - -just be sure the rocker arms have a little slack when each piston is near the top of its compression stroke.
The exact compression pressure isn't terribly important, as long as it's somewhere in the 75-100 PSI range, but dramatic differences from one cylinder to another can indicate serious internal trouble- - - -burned valves, blown gaskets, broken rings, etc. If the compression is adequate and close to uniform, you've got a good base to work with. Then address concerns about timing, etc. Don't forget to check the point gap. Also, be sure the firing order is right. It should be 1-5-3-6-2-4, in the clockwise direction looking at the top of the distributor cap.
Edit: Is there still a 1/4 mile dirt race track at Watsonville? I used to race there back in the late 1970's.
Jerry
