Ouch, what we have here is a gunnysack full of cats.

The engine hasn't been though out well during the design process. Some of the cats in that sack are nice cats, but they ain't gonna play well in the sack.

From the last post, there is no way I'm gonna lock the distributor at 36 degrees with a cam that small. Where is the cam timed at and what is the cranking compression? What elevation are you at? (Never mind, elevation 935') Bad tuning with the compression, the wrong pistons and wrong cylinder heads, is my guess.