Timing/Power/MPG

OK, I have a pretty fresh 318 .030 over stock heads and cam, 727 and 2.76 gears, dual exhaust. It runs great(at idle and in neutral or park stationary), sounds strong, 10* initial, about 34 around 2500.500cmf Edie, 340 intake(came with the car, I know its a slight mismatch), stock manifolds. It seems real weak to me, sluggish accelleration, new tune up components. This part may sound funny, At tdc, my rotor is pointing at the front of the car, I 180ed it(pointed straight at the rear of the car), and it wouldn't run. I put it back, all was well. I read in a previous post, some guys were saying to time the engine, keep advancing till it stops gaining RPM while reducing the RPM, it was a mech advance dist(I have vac), does this sound right? I know stock 318s are a bit weak, but I think a Neon could take me. I am also getting about 10MPG, I feel I should be getting 16-18. Any ideas are greatly appreciated. I bought this car while in Afghanistan and am working the issues now that I am back. Thanks
Jason