weird smelling smoke!?! please help!

Or, it could be that your baseline jetting is reasonable, and your pump shot is too aggressive causing momentary dilution of the oil on the cylinder walls, and a puff of smoke.

I'm betting the backfire is the 42 degrees total timing which seems like a lot for a 9.8:1 engine. To keep the 16 initial, and have less total, you'll need to reduce the amount of mechanical advance in the distributor. To do this, the slots in the upper advance plate need to be shortened either by welding and grinding or adding small stop screws.

Hotter plugs won't help, they'll just be impossible to read. If the plugs you have now aren't fouling, they're hot enough.