The streams are normal, but you might be dumping in too much. There is supposed to be some additional gas sprayed in when you open the butterflies. I can't remember the exact term, but it's something like pump shot.

13 degrees sounds like a little too much. Do you get any knocking when under load?

Have you checked your float levels? If you've got them set too high you might be dripping fuel into the intake. That can also make for a rough low end too. Pull off your sight plugs to the bowls and check. If gas comes out of the holes they're set too high. I believe most holleys are supposed to be set with the level just at the bottom of the sight plug opening.

When you start the car, does it crank and start easy? (if there's not a fire) Do you have to pump the pedal much?

I'm guessing that you've might have the floats off, maybe too big a pump shot (I'd leave that alone until later), couple that with a bit too much advance and it's likely you'll have a fire.

I doubt water in the fuel could have caused this, but how did you get out the bad gas? Is your filter in good condition? I had some problems with a holley with the needle and seats getting bits of contaminates stick in them.