Is my 340 Overcarbed? Avg 5-6 MPG

OK I just got back from Pep Boys and picked up some 69 and 68 jets as well as some 81 and 82 jets for the secondaries. Do I need to plus up on the secondary to richen WOT out? I will try and mess with timing again, but the more I would advance it, it would start pinging badly. The most I could get was 18 degrees. I checked the bushing in the dizzy and it is a black one so I am as big as I can go there. If I keep my timing at 18 degrees initial that would bump my total up to 36. Does that sound right?

IMO you're going in the wrong direction you need to be looking more at your power valve... Read these steps carefully and your car WILL run better:

1) STOP jetting down! In fact go back to where your WOT was closer to 13:1 or less
2) Change the mechanical advance bushing for less advance; I think the next one down is 18* see if you can go even more than that. You want like 12* ideally so that...
3) You can set the initial advance to 20* or so where it should be 14* is way too little and end up with not more than 32-34* total advance.

You're getting ahead of yourself here tuning Holleys isn't only about swapping jets so take a step back and carefully re-read what everyone has been telling you in this thread regarding timing and target A/F ratios.