You ask if the problem is electrical. Doesn't really sound like it, but a few things to check...
If you have an ohm meter, disconnect the wire from the ignition switch at the resistor. Disconnect the lead from the coil to the distributor. Connect the ohm meter from the resistor terminal just disconnected to the negative terminal of the coil. Should get about 3.0 ohms. If the reading is high, try reading without the resistor. Possibly the coil doesn't need the resistor.
Another test, reconnect everything, start the engine. Put a volt meter on the resistor terminal from the ign switch, other lead on good ground. Should read steady battery voltage, about 14 to 15 volts.
Also you can try playing with the timing. Just to say you tried, turn it a few degrees ether way, see if it makes a difference. But don't be tricked by an increase in idle speed. Adjust the idle back down to compensate. If the problem returns, adjusting the timing didn't fix it.
My guess is it's going to be compression/carbon problems. Have you adjusted the valves? If not, carefully set them, then check the compression. If there is more than 10 PSI difference between cylinders, chances are there are leaking valves and carboned up cylinders.
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Today's Featured Article - Hydraulic Basics - Part 2 - by Curtis Von Fange. In the last entry to this series we gave a brief overview of hydraulic system theory, its basic components and how it works. Now lets take a look at some general maintenance tips that will keep our system operating to its fullest potential. The two biggest enemies to a hydraulic system are dirt and water. Dirt can score the insides of cylinders, spool valves and pumps. Wate
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