Identified at least one wire mis firing. Took it out , seems to have helped or stopped the surging at idle. But seems to run better advanced way up like 25 with vac attached! Timing chain stretched that much? Ouch
The timing for these engines, is 25-30 deg BTDC without vac. at 3000 rpm. the slot doesn't go much further than that, so you should be OK.
To reset your timing, plug teh vac tube. Then set rpm at 3000rpm and turn distributor CCW until it is almost at end of travel and you have close to 30 deg BTDC. Car will run best there.
This shows nothing about the timing chain.
To check that you need to set the pass side cam on its TDC mark and then see what the marks on the balancer say. (always turning CW!)
If you have bad running issues and you had the distrib out, make sure when balancer is at TDC, that the rotor points at the TDC mark on the distr housing.
The surging at idle indicates that idle speed is too high (1500rpm+). Adjust it back below 1500rpm and surging should stop. If you can't lower the idle speed, you have a vacuum leak. If it is only when cold, it could be the Aux Air Valve sticking closed.
These cars are supposed to have copper core wires. I would dump those wires. Bosch or Beru have wires for these cars. Resistor plugs are fine if you use the Bosch wires.
Do you know how to wire the Pertronix? If not ask - It is nothing like what Petronix says. You could start by just replacing the points and once you have it runing well, then go on to changing the coil. When you change the coil, you might find your tach no longer works.