Curt,
Maybe I'm coming out of left field on this, but I'm running crane cams set up with my distributor, and had some of the same problems it sounds like you're having when I first installed it. (I do have a Holley 390 cfm 4- bbl on my 194, but that shouldn't matter.) The crane cams set up I have is different than your pertonix but some similarities, with adjustments. I had to do some fine tuning with mine for it to run, idle, time properly. (The timing requrements didn't change any from stock requirements.) I had to "phase in" the optical trigger on mine. But I noticed on Pertronix's web site, under troubleshooting, it mentions a few things, 1) correct positioning of the Ignitor red wire, 2) the air gap between the module and magnet sleeve being too great, 3) ground wire inside the distributor is not connected, 4) wire connections are not tight, 5) polarity is not correct. Is there a manual vacuum adjustment on that distributor? I noticed that on their website as well. Possible problem areas??? Also, areas that you've probably already checked, but I'll throw them out there --good, solid-core plug wires, making sure that they are not "crossed over" one another; -- good coil, possibly heavy duty; -- also, Leo Santucci's Power Manual states that with HEI, .050 to .080 pug gaps may be used, so your .040 should be okay too. It just sounds like you are going round and round with all of the other stuff, carb adjustments, etc., maybe this will help. Good luck!
Eric
