"Inside" means recirculated air, which is the same as "max AC" in later cars. Not sure if the '69 has a water valve, but if it does, "inside" should close that valve, as well as close the flap which lets in outside air.
There should not be much, if any, air to the feet unless "heat" or "defrost" is selected. I suspect the heater outlet dashpot (vacuum-powered actuator) has sprung a leak or the vacuum valve which is what the dash selector actually operates has a leak.
As to cooling performance, there's so many variables to get right. Which refrigerant? If R-134a, you'll get better performance with a parallel-flow condenser. If 134a, is the POA valve calibrated for that? Is there even one in there or was it replaced with a cycling clutch tube? What are the pressures during operation and at what rpm's? Do they correspond to the chart?
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