i checked the timing with a light and its correct.
i redid the dist. timing according to factory service manual.
I agree, I do have fuel because I can see it coming out of the exhaust ports when it isn't shooting fire. I'm not so sure about the spark though because it doens't flame everytime.
could it be that i'm not getting enough good spark to ignite the fuel and it is just building up and detonating?

I know that a detonation is when the compression blows the fuel up without the spark. i'm not sure when exactly that detonation happens, so i'm not sure if the values are supposed to be open with that happens or not...