Searching the web found me your post. I have a 461 Kauffman, 310 heads and pro flo 4. I also noticed when setting the base timing, it too would bounce around when using a timing light. Then I saw you had found loose hardware inside the distributor, did this end up solving your issue? Curious what timing settings you have. I'm at 17.25 base, starting @1200. 36 max at 3000 rpm and 10 degrees of vacuum advance.
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KRE 461,310 CFM 85cc, KB pistons, Eagle rods, Ohio crank KRE custom HR236,Dougs ceramic,Edelbrock Pro Flo 4. Quick Performance 9".
552HP 594 TQ