Changing dwell changes the ignition timing. Going from large dwell to a smaller dwell advances the timing, which you say makes it run well. The problem sounds like the initial timing is much too retarded. Set the dwell mechanically by adjusting the points gap to 0.016" - 0.017". This will get the dwell in the ball park. Now adjust the initial timing, making sure the vacuum advance is disconnected & plugged while doing this. Initial should be in the range of 4 to 12 degrees BTDC. I would use 10 to get the timing set up. Once you have it set at 10 BTDC, you can go back & fine-adjust the dwell. Then, recheck the initial timng, because it will change if you altered the dwell.
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