MG Noir:
cfrench:I am not an ignition person by any means but I really think your problem is ignition related. Have someone good check the whole enchilada on the passenger side of the engine. Better voices will chime in I am sure.
I'd agree. I was just having the exact same problem with my Midget. Kept messing with carbs, jets, all that. Finally bought a $10 set of points and put it in, instant zip.
I don't have experience with british cars, just aquired my first MGB. I have, however, had experience with points ignition systems.
Check the play in your distributor, make sure that there's not too much in the shaft. I don't have a measurement for you, perhaps check it against a known good distributor. As the above poster mentioned, be sure your points are good, the're cheap so you might just replace them, sometimes you just get "lemon" points.
An oft-overlooked problem is the points wire from the coil. Cheap connections or dirt can cause weird problems like this. I'm not sure if MG's are supposed to have a resistor wire, mine has a homemade one the DPO made in the garage. It's serviceable for now so I haven't replaced it.
If the distributor is original and wasn't replaced with a rebuilt one during the engine freshening, it could be that you need a new one. I assume the MG distributors are expensive.
Good luck.