Edelbrock Air Gap on Magnum 318 Problems

what type of hesitation do you have? Is it a part-throttle hesitation (like accelerating up a hill with half throttle) or a Full-open throttle hesitation?

I noticed you say you have the vacuum hooked up directly to the intake. This is not advised on a street driven car. (where it hardly ever runs wide open throttle) You want to run the vacuum line to the ported side of the carb. That way you wont have a bog at part throttle.