not a 396 just a 323:(

I have it as far as it will go I have been thinking about pulling the cam and re-installing it 12-12 and see where that gets me or just going with a different cam all together like a comp 280h or lunati 268.

Installing the timing gears at 12 and 6 is no different than 12 and 12. You notice how the top (cam) sprocket is twice as big as the crank gear? That's cause the cam turns at half speed of the crank. If you install the timing gears at 6 and 12 O'clock and rotate the crankshaft exactly one turn the timing gears will now be at 12 and 12. The only thing that's affected by installing the timing gears at 6 and 12 vs. 12 and 12 is when they are at 12 and 12 #1 cylinder is on the compression stroke and at 6 and 12 #1 is on exhaust stroke. Therefore when you install timing gears at 12 and 12 that's when your rotor should be pointing at #1 cylinder.

If you do tear it down the only thing you can do with your current setup is make sure it's degree'd in. Degree'ing the cam means your checking and adjusting the intake lobe centerline and setting it to the cam manufacturers specification which generally provides maximum perf. For instance if the cam card calls for an installed intake lobe center of 108 that's what you shoot for. When you check it you may find it's not at 108 but at 110 or 112 which means the cam is retarded and that'll cost you low end torque. Could also be at 106 or 104 which can help low end torque.

Also you seem to be confusing cam timing with spark timing. I say that cause I said to try more timing. When I said that I meant more spark advance cause you said you have it at 26 initial with 6 degrees of centrifugal advance. That only equals 32 degrees total. Try advancing the dist. a couple degrees at a time until you find the point of maximum perf. without it spark knocking.

But again your biggest problem is the gears.