Is my engine performing as it should??

I think you should lessen the plug gap. I'm running a similar ignition system (Mallory HyFire 6A) on my slightly-warmed 318 and I have my plugs set at .040". Using an online calculator those times indicate around 240 HP at the flywheel (net) which is a bit low. Make sure your ignition advance is dialed-in properly as well as your A/F ratio and the secondaries on your carb (if they are somehow adjustable, I only know Carters). If that doesn't help too much a looser converter might knock off a few tenths; do you happen to know if the converter you have is from a stock HP car (340, 360, etc.) or just a regular smallblock 727?