340 - This thing should run better

Possibly not correct. If compression is where I suspect, you only have around 8.1. For that compression, it is overcammed. You can advance the cam timing and it will help greatly. I honestly think your biggest problem is compression........or the lack thereof.

I agree, the lack of compression is killing the engine. I think the best solution for this would be to use a better head. Find a set of cheap factory cast heads with less cc's. Maybe even a head with 2.02's in it too. Then the engine would breathe better and you'll be really taking advantage of the cams potential.

also ditch the old cast iron exhaust logs. You can get a set of headers for $120 shipped last time I saw on Jegs' website. They may still have the sale going on.