DYNO disaster ? Help

You really need to raise your shift points. 5000 rpm is too low. You also need more converter. I bet that TCI Breakaway converter has barely any more stall than a stock 318 converter. I would avoid the Alabama Boss Hog converters. They don't have a very good rep. Check with Dynamic,PTC,ATI or any number of other good converter companies. A GOOD high stall converter is perfectly streetable. Put a good 10(or 9.5) inch 3500 stall in it, get some sticky tires and shift it at 5500-5800 and watch yourself drop into the 12s. And i think a Holley 750 DP would work better than your Edelbrock. I have had good luck with the orange box ignition. You don't need a fancy ignition in a 12-13 second car.