Horrie,
You said you checked the timing, but did you inspect the points and gap them correctly? Burnt points are a sign of a faulty condensor which will give you problems like you describe. The condensor is usually the last thing people go for - but 40 year old capacitors tend to be a bit long in the tooth
If you have access to a tune up machine it should be pretty straightforward to identify the culprit. Leighs right about carbon tracking too - its always good to remove, inspect carefully and clean all the engines high tension components as a starting point - I've seen rotors that are cracked and allowing the HT to short to the centre shaft of the dizzy, or dirty plug insulators that have allowed carbon tracking to earth. Remember you've got 30,000 volts pretty keen on finding the easiest way to ground - either by the correct method via the plug, or any other way it sees fit!!!!
Have fun.
Cheers,
Craig.