Update:

I purchased a new magnetic pickup and checked the resistance of this new one against the existing one in the distributor. I found the new one at .319 and the old one at .322. So I pulled the distributor and found the gap to be huge! I was able to drop an .020" feeler in between the pickup and the relucter with no problem. I didn't try and get an actual measurement but my guess was that it was probably .025" or more. I am surprised that it ran at all. The existing pickup had a lot of wear on the pickup (that sticks out beyond the coil) versus the new one out of the box.

I replaced the pickup and set the gap to .008 (non magnetic feeler) and I will get back on it tonight to see if this was the issue.

Thanks again!