A couple of things concern me:
1) You put steel wool where? I wouldn't introduce steel wool particles anywhere on a running engine, you are just asking for trouble.
It's very coarse wool, notthe type that sheds. I used it as a sort of coalescer to trap the oil so it doesn't leak out the breather. These are Cal custom rocker covers with the rectangular breather vents on hte side of the cover.
2) 516 heads are the early closed chamber small valve heads, and 906 heads are open chamber large valve heads.
Thats strange because the heads that came off had larger valves (516's)
3) Did you re-use the intake valley pan?
New valley pan
4) Did you re-use the carb base gasket?
New gasket
5) Is the large vacuum port on the carb base disconnected?
Yes, vacuum cap and clamp
6) Did you possibly over tighten the carb base bolts/nuts
I'd have to say no to that one but I didn't use a torque value on them.
What is the possibility you changed the distributor weight springs for the lighter Mr. Gasket set? I did that, it at would die at idle, and had to set the timing and curb idle to about 1200 RPM just so it would idle.