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If you're new to carbs, (even if you're not) this is a great place to start http://www.bob2000.com/carb.htm
You can learn an awful lot about your tuning with nothing but a vacuum gauge and and tachometer. I too set my timing by feel (used the vacuum gauge) at idle and it was too far advanced. I think I'm at 9* now and the boat gained about 3mph top end. I had to up the curb idle to get it to idle nicely but it does. Based on the fact that it will idle nicer with a more advanced timing it sounds like the weights in your distributor may be sticking.
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Second that on the mechanical advance , clean the springs and pivots with contact cleaner and throw some lithium grease on the pivots . You can also rebuild them as well
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Thanks for the responses fellas. We ended up going through the throttle linkage and snugging it up /adjusting and throwing on a new cap and rotor. Seems to have solved the issue. I will replace the distributor over the winter here, as I should be pulling the motor and trans this week. Am I going to have to pull the prop and shaft out to lift the trans out with the engine? It looked that way to me. I am really not looking forward to tearing this boat apart, but I better start chipping away at it.
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One more item that usually goes overlooked is the PCV valve. While running the engine @ low RPMs under load they get worked really hard. Usually cost under 10 bucks.Could be an cheap easy fix .
