318 mystery problem, somewhat solved!

Sorry not black but grey. When you hit the throttle and then after you come off I see smoke out the tailpipes as it comes back to idle. A pretty decent puff. I think this is normal to see some of this, but yours seems a bit extreme. I am guessing you are running fat still.

How is it driving?

Oh and re the kickdown lever. Where does the car shift normally. The kickdown is also related to the govenor. So if your car shifts out of 1st real quick even with a fair amount of throttle, the kickdown adjustment may only help so much. I have that issue with my 340. I will be putting a higher rpm shift govenor in.