Your timing is not way off - at least it's on the right side of TDC
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But a little more timing at idle will smooth it out some and should cool it down. You can get there either through more initial timing (as long as total initial and centrifugal advance don't exceed 36 to 38 deg) or run vacuum advance to a full time vacuum connection on your carb (not ported vacuum).
From the description of the distributor (two vacuum ports) it sounds like a later 60s model smog distributor. They had some crazy stuff back then - I think it brought in vacuum advance in some situations and then the other port took it back out in others - definitely not good for performance.
So in short - I would forget the vacuum advance and get a dial back timing light and check your total of initial and centrifugal advance and see what it is. If the total is only about 32 or 33 degrees then you can safely crank in another 4 or 5 degrees of initial timing. However, if this is a smog distributor it probably has a lot of centrifugal advance built in it and 10 deg may be all you can time it for. In that case I would find another distributor or get someone to re-curve yours for you. I know someone who can do that if you want to send it to him.