The ignition distributor has a spark advance mechanism built in, that advances the spark timing as the engine speed increases. If you are using a timing light to set the ignition timing, keep the timing light on the marks as you increase the engine speed. The ignition timing should increase as engine speed increases, for a total of 20-30 degrees advance at full engine speed. If the timing does not increase as the engine speeds up, then the advance mechamism is stuck. In most ignition distributors, you can usually access the advance mechanism (weights and springs) by removing the plate in the distributor where the points are mounted.
Soak the stuck parts with solvent oil(including the hollow top of the distributor shaft.) and use a locking pliars(small vice grip) gently clamped to the distributor shaft where the rotor plugs on, to twist the shaft to get the advance mechanism freed up. When things are properly freed up, when you use the vice grip to twist the distributor shaft in the direction of normal rotation, it should twist about 10-15 degrees against spring pressure. When you release twisting pressure on the shaft, the advance springs should pull the shaft back to the idle /retarded spark position.
Lightly oil the freed up mechanism including 5 drops of motor oil in the top of the distributor shaft and reinstall the point plate. Retime the engine and your hot exhaust trouble should be over. The engine should also run much better at speed.
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