340 Running super weird

Put the distributor back to the way it was. The older (Chrysler built) DC/MP distributors have a great timing curve for a stock or close to stock 340. Then you'll have to reset the timing. Either set it to 12 around 750 rpm or follow the instructions from MP setting it at 2800. That will be your new baseline. Tweak it from there.
Is there any chance that you could post that MP curve?