[ QUOTE ]
So, does anybody have an idea why overly retarded ignition would cause a clatter noise at low rpm, high load?
[/ QUOTE ]
Please keep in mind, I'm not an expert on engine timing, but from what I know, I'd suspect that if your timing was SEVERLY retarded, your engine may have actually been igniting the air/fuel mixture so late that the combustion gases were still burning as the exhaust valve began to open.
Retarding the timing definately effects MPG. The more retarded, the worse the MPG and loss of power as the combustion gases would be "chasing" the piston down the cylinder due to the late firing.
Also, overly retarded timing raises exhaust gas temps which would raise the thermal stresses on the pistons, plugs, valves, and exhaust system.
My best guess would be that you noticed this more at low RPMs and under load due to vacuum advance and the centrifical weights in the distributor not catching up fast enough to advance the timing. At higher RPMs, the dizzy would be at full advance and would somewhat limit the effects of overly retarded timing.