340 Chugging instead of Reving

With the distributor locked out, you should be able to get the engine running, set the timing to 32 deg on the balancer with a timing light. Shut it off, rotate the balancer by hand to 32 degrees btdc on number 1 compression, pull the cap, and the rotor better be damn close to the number one terminal on the cap and the pole on the reluctor be damn close to the center of the pick up.