I've got a few distributors kicking around actually. I'll swap this one out for another, and see if my readings change. It's entirely possible it's worn out, the 305 it came from had 250,000km. But it ran good, which is weird.
I bought a compression tester. I'll give that a try today. I don't have a leakdown tester, but I did have the heads looked at by the machine shop. They said all valves but one sealed fine. The one had a slow leak. They recommended a complete valve job, but I couldn't drop an extra $1000 on it.
I didn't degree the cam. I did verify the TDC mark with a dial gauge though.
Should I look into re-adjusting the valves?