I guess I just don't believe in the "try this, try that" type of analysis. If it were mine, here's what I would do:
First pull your plugs and read them. What color are they?
Second, find out where your timing is!!! Don't do ANYTHING until you find out where you're at right now.
Mild cam? How mild? What duration? A little too much duration and its going to be a bit of a dog off idle with 8.5:1
Your problem may be simply fixed by a stall converter!
How is this hesitation coming in? Do you notice it even with very light throttle, or when you give it a stab to half throttle it falls on its face for a minute?