First what your seeing in the pan doesn't bother me much. Could be from the lines, cooler, or even left over in the trans. Not knowing the timing sends a red flag for sure. It could start and run fine at 10 retarded. The real issue I see is more than likely this; less than 8-1 compression,
[email protected] cam, single plane intake, mechanical carb, 1800 converter and 2.76? gear. There is your answer right there. That combination is severely mismatched. Timing, rear gear, converter will help. But if its got the stock compression height pistons you'll be lucky to be 8-1. This combo needs more than that to be effective. I've been down this trail before. 8-1 360, .509 hydraulic, 650 mechanical carb. At least mine had a LD 340 dual plane and a 4 speed. I can sum mine up in one word, DOG.
Doug