69 340 problems

George, if you have a factory service manual, read the section on valve timing. If you check that first you`ll know right where the valves are timed in relation to your timing mark/dampener. That way there will be no guessing and it`s one thing you can be assured of and therefore disregard. When you check your compression you should be closer to 150-160 psi with a tired engine and 175-180 with a newly rebuilt 68-71 engine. I think you might be getting way sidetracked now but the timing chain likely needed replacing and a good, hot, dependable, ignition system would be a very good upgrade.