I'm chiming in very late on this one, so forgive any redundancy.
Your first post suggests that you can't get above 2k rpm.
When all else has been eliminated..... good spark, good fuel delivery, correct prop pitch, clean hull, correct gear ratio, etc......, check the ignition advance... not BASE, but check the progressive advance that occurs in addition to BASE advance.
It's just too dang important to NOT check!
Without the correct progressive advance, our engines will not produce the power that we expect.
Normally, I do this in reverse order (making this first on my list), but many DYR's will leave ignition advance until last.
And many times will find this to be the culprit when older worn mechanical ignition advancing systems are used.
Regarding your Hall Effect conversion kit:
I'd ditch that Hall Effect triggering system, and install a good new electronic ignition system, such as Mallory's YLM series that uses VR triggering.
Anything but a Hall Effect conversion kit!
The conversion kit does ZERO for an older distributor that may not be offering the correct Marine advance curve and limit.
As noted...... this is very important!
I understand what member Paw2000 is saying re; timing.
However, and very important here.....
DO NOT allow too much advance at these lower RPM.
See your OEM specs and DO NOT deviate.
Set BASE, but realize that
BASE is BASE, and that's all.
We fire on BASE, and we idle on BASE.... we don't run on BASE.
We operate on the correct progressive advance.
You should see your Full-In advance being spec'd at/around 3.2k rpm,
and no lower.
You should also concern yourself with the correct advance
"curve" as per OEM.
Full-In advance at anything near/at 2k rpm is a recipe for Detonation Damage .... 28* @ 2k rpm for example!
Again, see your OEM curve.
Also, and not very popular among the Digitally Advancing timing light owners, try to mark off your harmonic balancer up to 35*, and strobe this with a Std Timing light, and/or a digital timing light that is in Std Mode.
This allows us to view the advance in
Real Time/Real Degrees.
One user error, or one mis-calibration and/or error in/of the equipment........, and you could be off by several degrees.
Not worth the risk, IMO.
If it wasn't so dang important, I'd be OK with the digitally advancing type lights for this!
Also, and not wanting to beat a dead horse here....
but know your engine build.
If the full dished pistons are used, we cannot throw as much TA (total advance) at this type engine build.
Conversely, if the Quench Effect style pistons are used, we can throw a tad bit more TA to this type build engine, offering us better performance.
This pertains to the SBC, or an engine that incorporates a wedge within the combustion chamber.
It may not apply to other types of combustion chambers.
Just an FYI on your spark plug readings.
The SBC Marine Cruiser Engine version will almost always require a dual plane intake manifold.
This splits the cylinders up with regard to what/how the carburetor delivers fuel/air to all 8 cylinders.
Upper plane supplies cylinder #'s 3, 2, 5 & 8.... lower plane supplies #'s 1, 4, 7 & 6.
You said that #'s 2, 3, 5 & 6 spark plugs were black compared to #'s 1, 4, 7 & 8.
So something may not be jiving with your readings, if these readings are a result of carburetor fuel delivery in the normal sense of things.
Perhaps you have an issue right in the cylinder itself, rather than fuel/air delivery!
.