Break in question . burned paint?

We put the inner springs in and adjusted the valves per the cam maker, ( oregon cams), .016 intake , .018 exhaust. Placed the 1 inch carb spacer. Since we are all broken in, I was trying to get the idle set. I was only able to get it down to 1200, without stalling, with 10-11 inches of "manifold" vacuum by adjusting the A/F mixture about 1/2 turn out more than the factory 1 1/4 turns. I hooked up the vacuum advance to the distributor and we had the advance at 36 with the canister connected to the ported vacuum at 1200 rpms. The motor stayed cool at 175* or so. 180 degree thermostat. Pipes were over 500 on 1,3,5,7, 8. But only 240-300 on 2 and 6. 400 or so on 4. Compression was at 170-175 on all cylinders. Oil pressure was at 55-65 psi

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