I am using a magneto signal converter. It has been hooked up this way from the day one. Here is a diagram showing exactly how I have it connected. https://www.autometer.com/download_instruction/753A.pdf

This issue is so strange. Now you got me thinking that its the carb again. I need to replace it anyway. I am thinking about installing the Edelbrock (Carter AFB type) carb, not too sure what size yet, maybe 750cfm. I might even get rid of the mag too. Maybe an HEI or MSD to replace it. I would eventually like to install the Edelbrock top end performance kit so I wanna make sure that I purchase the right carb as it is not included in the kit.