okay so finally, as my friend put it: "The Demon of Morris Garage has been VANQUISHED!!!"
I need to remind myself when something is having weird issues that don't make sense, it's highly likely to be multiple problems
and thats exactly what was going on here. It was the coincidence of other failures happening just after the head gasket
blew that threw me way off.
so these were the issues:
1. Ethanol damage to the Power Valve diaphragm in my Weber DGV - causing flooding
2. flaky points - causing erratic ignition timing. verified by a timing light once carb was rebuilt..tdc marker was all over the place and not stable.
The points were brand new and installed just a month before when I had my distributor rebuilt locally. They did a fine job, but those points looked a little
different to the points normally seen. They definitely were mgb points and worked fine initially, but something in them was wrong after the head gasket
blew and I never touched the distributor.
They were closing at an angle and not head on (flat against each other) as the points are supposed to.
If it helps anyone else, the actual (problem) points themselves were shorter and wider than
the one I just installed which are taller/narrower looking. And both the metal springy piece and the plastic part that bumps the
distributor shaft corners was shorter. Last, the threaded stud section of the points where the condenser and coil wire connect,
it was plastic on the problem one and metal on the newer points (with a plastic washer to isolate.)
Car is running great again, though I have an oil leak in the back of the new rubber valve cover gasket....easily fixed.
So that's it guys.
Thanks for all the comments and assistance in slaying this son of a bitch that robbed me of a month's worth of summer driving.