Thank you for the pictures they are excellent! So you have one of the better 1968 up Duel Advance Point type Distributor's they are much better that the old Load O Matic's and can work very well as is or be up graded some with a few parts too. The Autolite 1100 has been Modded somewhat, the SCV is gone and it's mounting hole was partially plugged. This Mod wasn't done correctly, it can have the Drop A Load Mods done to regain the use of Distributor Vacuum Advance Line Hook up, or left as is using the just the Manifold Vacuum. Check to see if there are any vacuum leaks on the Carb or at its Base. Were is the Distributors Front Vacuum Advance Line hooked up at, Manifold Vacuum? The Autolite 1100 "Drop A Load" Mods with great pictures are located here at this link.
https://fordsix.com/threads/jimg-co...-ported-vacuum-sun-aug-21-2011-6-24-am.84689/
These are the Basic Stock 1968 Ford 200 Six Tune Up Specs for a C4 Auto Trans Mustang
Plugs BF 82 set at .034
Point Dwell Angle 38 Degrees
Base Timing for an Auto Trans is 12 Degrees BTDC
Fuel Pump Pressure is 4 1/2 PSI
Curb Idle for an Auto Trans is 550 RPM with the Trans in Drive With Parking Brake set and Wheels Blocked (or have a Friend Set in the Car with their Foot on the Brakes). For a Manual Trans the Curb Idle is set to 650 to 700 RPM with the Trans in Neutral with Brakes Set as above.
When I do these tune ups I found that doing them in this order was the quickest way to having a good Tune Up
1. Set the Spark Plug gap to the above spec first.
2. When installing a new set of Ignition Points the Basic Distributor Points Gap Setting is 0.027 (Rubbing Block on the high point of the Distributor Cam) Skip this step if the Points are not being changed.
3. Finally Set the Points to the above Dwell Angle Setting after the engine is Running. This is the very Best way to set your Points.
4. Set the Base Ignition Timing with a Timing Light.
5. Check the Carbs Choke is operating correctly the Choke Blade when the engine is warmed up good should be fully open with blade centered and pointing exactly straight up. Basic setting on choke Cover is 2 Rich, Fast Idle Setting is about 1200 to 1500 RPM With Choke Linkage on the High Point > Mark setting and engine Cold Choke Blade should be Closed.
6. Now with the engine warmed up good and with the choke is wide open, now set the Carbs Mixture Screw Setting to the Lean Best Idle. To do this first set the mixture screw so you have the highest Idle RPM or if you are using a Vacuum Gauge then set it to the Highest Vacuum Reading on your vacuum gauge. Now turn the Mixture Screw inward one 1/4 tuner this is now set to the lean best idle.
7. Last thing to do now is to set the Carbs Curb Idle RPM Spec.
I will also will repeat the last two (6 & 7) again just to verify them and see if the setting will change any more for the better. Good Luck