I'd dump a little dribble of fuel (like a shot glass full or less) down the carb throat and see what it does. if it is fuel delivery it should fire over. You should also gap the points correctly wiith a feeler gauge, too much gap could cause it to missfire. It might also pay to adjust the valves, or run a compression check to make sure they are actually closing and opening enough.
The distributor should be set so the vac advance is pointing just about straight back. Your symptoms sound a lot like the 80 I got not running. It turned out that the cam timing was 180 degrees off. It would pop a little, and backfire out the carb (with flames !) if I poured fuel down it. So, you could try swapping plug wires on the cap. Swap 1 and 4, and 2 and 3. A lot of the timing instructions for the cam actually go off #4 being at TDC, so it is easy to get things backwards when you pull the head/cam. I always wire the cam gear to the chain when pulling the head, so the cam timing cannot change. If I had to bet, I'd wager on the timing being 180 out, so swapping plug wires is a quick check to eliminate that as a problem.
There is an old post of mine that has all the instructions for verifying the cam timing, but I'm running low on time right now. Search for it, or I'll try to get on here later and find it for you. Hope this all helps

_________________
95 Isuzu Trooper Daily Driver
86 Isuzu Trooper reliable backup
77 LUV 2wd stock beltway blaster (resting)
79 4x4 LUV project: 2.6L, 5spd, 31s (eventually)
MEPR: Man, my 4x4 makes all other LUVs look good
