I rebuilt the carb and replaced the fuel filter/water separator and it ran better but was now backfiring thru the carb on acceleration, although at least it stayed running with idle set at 1000 RPM or so. I enriched the idle mix a bit and it idled better, adjusted idle down to 800 RPM or so and checked timing at 10 BTDC. We took it back out but it was still backfiring when pushed past 2200 RPM. It stalled in the fairway on the way back to the slip and we drifted to a nearby dock. The dock owner came down and had some experience with SBC's with Holley carbs and thought it could be bad gas, but I put my timing light on the coil wire and cranked it, and got what seemed like one signal per revolution, instead of the 4 or so per rev. It seems to be getting plenty off fuel as indicated by healthy spray from the accelerator pump. Since we were close, the marina owner came and towed us back to our slip. After an hour or so, it started up and idled fine, and I rechecked timing at 10 deg. BTDC.
I'm at wit's end at this point. The guy that helped at his dock suggested that I should put an HEI distributor in it, since the intermittent spark seemed to indicate a bad ignition (I've read that the Mallory 609 is less than reliable). Before I invest in a new distributor, I will replace the cap and rotor, and I was thinking of replacing the ballast resistor as well, since it it could lead to an electrical failure when it heats up. I will also check compression to see if a bad intake valve could be the cause of the backfire.
The engine wasn't backfiring before I rebuilt the carb and the only thing different was that I found 2 gaskets under the power valve and only put one back.
Anything else I should look at?