tryin to break in new engine, ruff idle

I ran it for a few more minutes today after messing with the timing, spark plugs and tried setting the distributor reluctor gap to .007 - .008.
It still ran rough, missing or not hittin on all 8, saw sparks and even a couple small flames come out of carb at startup attempt.

Doesn't sound like a carb issue does it?

PS - the cam is summit 1798 and it has advertise duration of 284 degrees. supposed to have a 480 lift with 1.5 rockers but I'm using stock rockers that are not true 1.5.