I just went through something similar trying to use a 61 distributor to keep the engine looking semi original. If I set the timing at 36* I would be idling retarded. First I tried using a press on limiter underneath to knock out some of the advance. Then a thicker one. It got a little better but still not where I wanted it. When I pulled the distributor there was so much up and down slop in the main shaft I took it out. Dropped in another distributor from a 72 and the prob was solved.
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