New engine issues

It is not 100% clear, so bear with me. If you set this 36* at idle then that is not the correct procedure. 32-34-36-38* refers to total ignition advance at RPM's in the 3000 RPM range + or -. That 'total' is what you set at idle (with the vacuum advance plugged off as you did), plus the mechanical advance in the distributor that adds in as RPM's increase.

Others can speak to the numbers better than I, but I would expect the MP distributor to add around 20* when it adds in its maximum amount of additional advance. So you set the timing at idle to around 15* (called 'initial' timing) and then watch as you increase the RPM's to see where and at what RPM the maximum advance occurs. That RPM is where the extra mechancial timing is added referred to as 'all in'.

The 'performance curve' in your distributor refers to how much advance it adds in, and at what RPM's. Performance curves typically add the extra advance in sooner.