B&M Converter is bad

Have you tried pulling off each plug wire at a time to make sure all 8 are firing?
No I have not, but I do have a new set of plug wires on the way and will be installing them soon. Oh its backfiring thru the carb not the tail pipes. I cant remember if I said that.

Make sure the engine is FULLY warm / up to temp when you adjust idle.
Yes it is fully warm
You MAY have a vacuum leak causing a lean condition. I agree--- sounds way lean.
I have sprayed carb cleaner all around the base of the carb and the intake itself and it did not change the RPM's so I believe that everything is sealed up good
Do NOT retard timing to "fix" chugging--the opposite. Set timing, adjust idle screws best you can for highest vacuum/ best idle, then diddle idle speed and adjust timing for now I'd LEAVE it at the 13/ 38 unless the engine seems to like more at idle. More idle speed/ more vacuum is an indicator. Keep backing the idle speed down as you improve idle.
Ok, thank you. I wasnt sure which way to move it and just wanted verification
Try pulling the idle screws clear out when running and stick your finger over the hole. This tends to pull out any dirt. If no effect, get some aerosol carb cleaner with a snorkel and blow some cleaner through the idle screw holes. Watch your eyes, it should come up out of the air bleeds int the throats.
I will do this tonight and give it a try.
The question is "have you improved it?" I dont know LOL

I'll throw out one crazy notion before I hit the sack...........Are you hooked up to a power brake booster?
No, I have manual brakes, but thanks for the thought
Have you verified that your timing marks are correct - is it actually on TDC when the marks are lined up? Is there a mis match in timing cover / damper? Also, is the distributor hooked up to manifold vacuum? If it is, sometimes what happens is when you put it in gear the idle slows enough that your vacuum drops enough to release the vacuum advance can and it dumps a bunch of timing.
Yes, I used a piston stop tool and checked it. Then remarked the balancer like Crackedback showed me. The balancer is 7.25" which from what I can find is the same as a stock factory balancer. So Im using the timing marks on the cover but the cover is from a 318, not a 360. Not sure if they changed them or not. I assume they are the same. The distributor is hooked up to the ported vacuum (higher port on carb)and not the manifold vacuum.

Im going to start from scratch again tonight after I clear out the idle mixture screws, I'll keep you all posted.