Weird Timing issue on my 318 V8 5.2L

yea - if it ain't broke.... those wires were fine right where they were - the timing is wrong (sounds like you adjusted the timing too far retarded - that would make the cap/wires look like it is in the wrong position). LA small blocks like 10-15 degrees of advance for initial timing. These things don't "jump timing" - if it was fine, then you have messed something up. Put it all back - then do some learning about timing before you make adjustments!! The harmonic balancer is held in place with a woodruff key - VERY much doubt it moved unless you installed it incorrectly. And yes, I believe you are correct, disconnect the vacuum advance before timing...

Hey Swampmike - I never took off the harmonic balancer or messed with it in any way - I did not rebuild this engine - it has had head work but not by me ........... I can kill the engine just by turning the distributor in either direction far enough - I simply kept it in the "middle" of those two adjustments and "listened" to how the engine ran - once it smooths out I stopped turning the distributor and tighten it up.