Bob,
I've been out of "computer range" for a week or so. Now I'm back. If your fuel pressure really is 7 1/2 pounds, I think your problem might be right there...might. See if you can get a more accurate measurment. I think you have enough flow, even though it is not fully up to specification, to run without surging or jerking. If the pressure really is that high, it may be allowing carburetter the float valve to intermittently blow open and flood momentarily, causing this uneven running. Maybe yes;maybe no, but it's worth a thought. However, I still wonder, as have other posters, if you have ignition problems. Some of the earlier Pertronix units did some funny stuff.
Transferring the timing marks to the top is smart. We do it to every car we take in with the marks on the botttom. Since we use advance reading timing lights, we only have to mark TDC. It's simple. Using the bottom marks, set the engine to TDC. It doesn't matter which cylinder (1 or 4) is at TDC for this operation. Once it's there, we usually just clean off a spot on the pulley and a spot on the timing cover and place a small dab of white paint on each in a location where vision is unobstructed. Life gets just a bit easier then.
Motorbill
From Lola to Land Rover, If it's British and has wheels, it's likely I've bloodied me knuckles thereupon