Your chain shouldnt be making the light jump around at all. Thats why I'm getting rid of my gears, they suck.
I've seen issues with the MSD distributors before though. You can swap to a HEI and keep the box and see how it works. I wouldnt bother with the modules though.
What manifold are you using? I would start slow and check for any kind of vacuum leaks. Is the carb dripping fuel at all?
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5.3L LSx, Fbody .500 cam, TH400, 4500 Stall, Moser 9"
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