318 runs real load and shakes like crazy

Well, Here are my guesses
1) put your timing lite on a different wire, until the index mark shows up, no big deal. If your balancer and cover are not matched, the marks will be out alrightee, but by exactly 90*. so this is NOT a problem.
2) I don't care how many times you move the intermediate shaft, you will always be able to find a Place to make the engine run, just by re-indexing the rotor. This is not my opinion, this is a stinking FACT. The reason that the factory installed it where they did is strictly for consistency and to accommodate the various lengths of the Secondary Ignition wires, read, economy.
3) Your engine will idle on ANY timing from TDC to about 25/30* advanced. It will idle best at about 8 to 20 degrees. In other words, if the firing order is correct (18436572), then just grab the distributor and advance the monster until it's happy, then worry about the why of the roughness.
4) because the throttle response is half decent, I feel your timing is at least in the ballpark.
5) as others have said, make sure your PCV System is functioning as designed with no leaks.
6) make sure there is NO moisture inside the distributor cap
7) make sure the Idle-Air bleeds are working
8) make sure the Secondaries are fully closed, and that there is no other air getting into the engine except thru the Primary throttle valves, and the PVC-valve.
9) Whenever an engine is shut off, there will always be at least two valves open, each in a different cylinder usually. If the engine has been sitting for a while, those two valves tend to rust, and may take a few minutes to start sealing.However, sometimes the stems stick in the guides. When that happens, the pistons sometimes kiss the open valves, and then you lose compression in those; and now, a compression test is mandated,

Happy HotRodding