Fargo, listening to the video, I'm not heating an engine that idles well, or runs well.
Sounds like a bad exhaust leak (blown manifold gasket, cracked/burned out manifold), or an externally blown head gasket. Though an exhaust leak won't cause running problems, a head gasket will. Can you tell where the leak is? You should be able to feel the leak, or a shot of oil in the carb intake will give a smoke bomb effect.
There could be valve problems, out of adjustment, broken spring, bent pushrods, loose valve seat. A visual inspection and valve setting will be helpful, and a compression check/leak down test too.
A quick and easy test for valve/compression/general engine health is to remove and ground the coil wire, remove the air filter hose from the carb, hold your hand over the carb inlet, crank the engine through. You should get strong steady vacuum. No intermittent pulses, no back flow.
The only other thing I would check, side play in the distributor shaft. Any play will cause the points to not stay set. The points going out of set is often associated with changes in RPM.
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Today's Featured Article - Third Brush Generators - by Chris Pratt. While I love straightening sheet metal, cleaning, and painting old tractors, I use every excuse to avoid working on the on the electrics. I find the whole process sheer mystery. I have picked up and attempted to read every auto and farm electrics book with no improvement in the situation. They all seem to start with a chapter entitled "Theory of Electricity". After a few paragraphs I usually close the book and go back to banging out dents. A good friend and I were recently discussing our tractor electrical systems when he stated "I figure it all comes back to applying Ohms Law". At this point
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