I think I am just about finished diagnosing this engine. Changed the pulley and readjusted the valves to take into account dist drive gear being off 180. This solved 90 % of the issues. No more undiagnosed noise. What I am left with is an exhaust leak on the #1 cylinder making some of the noise. Also it appears that I am having problems with plugs/points or plug wires. Under accleration the car is lacking power and there is what feels/sounds like a rapid misfire. I am going to change the plug wires and reset the points, fix the exhaust leak and hopefully all will be well.
Thanks for all the help.