Anyway, I noticed #8 cylinder to be a bit noisy - could hear a mechanical tapping from within that is not present on other cylinders. Also, noticed some soot sprayed up onto the head. So I guess the gasket is blowing slightly as can be seen from the pic below where you can see the crap from cyl #8 compared to cylinder #6:

I'm guessing, but a blowing gasket could also let more noise out and this tapping could be the spark, or valve noise - i.e. nothing to be worried about.
However.....So far, I have only been runninng with a mechanical advance. I have a Mallory Electronic distributor, and have not added the vacuum pipe. I did so today, and once the engine was started, the tapping noise had gone. The engine was running much more smoother and quieter. Is this a case of the vacuum advance moving the spark to a different point of the ignition curve ?
Also, I noticed the engine hot idle was about 1,750 rpm compared to about 850 - 900 rpm before. I played around with the idle screws and got this down to about 1,200 at which point, there was a return of the tapping noise, but not as severe as without the vacuum pipe fitted. I've not tried to get the idle lower than that for now.
So I'm a little confused:
1. I have a blowing gasket from cyl #8 - easy to fix
2. I have a noise from cyl #8 that seems to go away when connecting up the vacuum advance pipe
3. Engine idle is higher with vacuum advance than without
My biggest worry is the tapping noise, which could be perfectly normal and just a factor of having a slightly blown exhaust manifold gasket, but would appreciate comments on this and the behaviour with vacuum hose fitted and if there is anything I should be looking into.
Alex