Engine sputtering at about 65

I agree ^, I don't think timing is the problem.

Did you put an 8.5 or 9.5" hg power valve in the carb?

just to the be sure, the distributor has only a single wire? not two wires going to a black rectangular plug??

This is the closest shot I have of the distributor. I popped the cap on the distributor and the rotor has a touch of carbon built up on it, wasn't sure if that's normal or not.

Distributor sensor wire.jpg