You may be on to something with the timing. I have it backed off now because I was concerned I might have too much compression with the lame 204/214 deg (or something like that) cam and stock 62 heads with the decked block. I'll throw a light on it in the next couple days and see.
Oh yeah, I've got a B&M Holeshot 2400 lockup converter. I did the exhaust with the 2-1/2" RARE exhaust manifolds with 2-1/2" pipes and x-pipe so it should be breathing OK.
I've got a '96 Z71 with a Rancho 4" lift and 33" tires that only gets 12 mpg around town as well so gas is just killing me these days!