The stock ignition is TERRIBLE. Lose the points immediately and get a MSD to go with it.
Since the car is lacking lowend performance I would plug off the vacume advance and run 32 degrees total timing all the time. This should help your lowend too.
Give a few more details on the car. and What does that 1/8 convert to 1/4mi.
Skyler
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1989 Saleen Mustang #406
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TFS Heads, Edelbrock intake, E-303, 3.73's, 1 5/8 shorty headers, Offroad-Hpipe, 2chamber flows, 36psi FPR, 32deg timing w/ spout out, 70mm tb, 73mm maf, 24lb injectors, K/N, March Crank pulley, MSD6a, 9mm wires and FMS Aluminum driveshaft.
Best ET 13.2@106mph (untuned)
Gtech 14.1@112mph
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