I would agree that you have a timing problem. Like Jim said , if you have magneto you have full advance once impulse has released. If you have battery ignition, it sounds like you are scattering the spark around due to worn auto advance mechanism. The timing should be near tdc at low idle and gradually advance to (depending on what shaft you have in distributor) full advance of eiether 22 degrees for fire crater, 30 degrees for std flat head aluminum or you may have a 40 degree shaft which was for cast iron regular bore gas engine. Anyway, if you have a lot of advance at idle , engine will have a rough sounding exhaust but will run fine at full throttle under load.
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