Thanks for the replies.
Mike: I have had the distributor hooked up to both ported and manifold vac and it still runs the same. I was hoping to swap out the PG to a beefed up 200r4, but would like to solve the problem before I do the swap and cause more problems. It would be nice to have the thing running good before I start changing it again.

French: I had a feeling that the head was to much for the PG, but didn't want to go there because the head cost me a lot, and I didn't want to get rid of it. The problem shifting into drive at 1000 rpm is that the car jumps and bang badly.

Twisted: If I step the cam up, will this not make the motor run rougher at an idle and therefore cause more problems for the tranny going into gear? I thought going with a small cam would not cause problems, but I do have problems. If lumps were installed do you think that it may smooth it out and idle around 500-600? I have never installed them so I know little about them, are the hard to install, can it be done with the head on the motor, motor in the car? I seen somewhere a tin plate was installed between the intake and head, and that was suppose to help, do you know anything about it?
Again, thanks to you all for the suggestions.