I'm no xspurt . but from experience it sounds to me like the timing is retarded by a few degrees .
forget the timing light > advance the timing by small increments till you get a slight ping under acceleration from a full stop , once you get the pinging , retard the dizzy back to the last increment before it did the ping , that is where the engine needs to be.
DO NOT RUN THE MOTOR WITH IT PINGING only let it ping for a second > stop and correct the timing back a notch.
your cam chain or gears are worn and will need replacing in the near future.
or some xspurt has incorrectly dial the cam in. LMFAO
if the carb jetting was correct before you messed with the distributor ? why mess with jetting , 77 s are miles to big for that little motor and will only make it lug and use lots of fuel.
67 or 68 will be fine on a stock 302 motor with a 2bbl carb.