What do you guys think?

Yep, drop the spacer, decrease the power valve rating, move up on the jets to 74's or larger, close the plug gap to .040, drop timing to 32 total but keep the intial timing about where it is (pull some mechanical advance out). I'll bet he could get 400 out of it if it's tuned right.

That 2" HVH spacer is nice piece for boosting power on the top end with single plane manifold like a Victor, not so hot for dual plane.