Ron, front left (driver's side) is actually #3 cylinder.  typically, there are three types of black fouled plugs..Usually, a wet, filmy black plug indicates oil getting past the valve guides/rings and accumulating in the combustion chamber.  This leaves a residue on the plugs.  A dry, black plug that looks chalky is usually an indicator that you have a rich fuel mixture.  Last, a wet black plug when you pull it out that quickly dries off but smells of fuel usually indicates a cylinder that is misfiring.  Basically, it's getting fuel in there but, for whatever reason, its not getting burned (bad plug wire, etc).  Any of these can cause a miss/ lack of power  that can lead to the "herkie-jerkie" that you speak of.  I'd say check the fuel mixture/ trash in the carb scenario first.  Poorly adjusted fuel (too much or too little) can result in the "no difference" timing adjustment you mentioned.  Also, if the car is running rich, they will tend to bog down, causing a symptom like you describe.

I haven't heard where you have the timing set. What marks do you have on your pulley ?  Which mark are you using ?

Go buy a timing light.  When you say EMPI pulley it has the degree #s ?
 Set your timing with the engine  running about 900-1000 rpm to 32 degrees total advance. Don't worry about where it idles. It might idle at 7 or 5 or 9 degrees. Who cares . You don't idle around town do you ?   Just remember 32 is the magic number.  Once you have that under control and you still have a problem at least timing will not be in question.

Ron, Is your EMPI pulley the same dia. as your stock pulley ?
       Stock pulley is about  6 3/4" in dia.  The only reason I'm asking is that some pulleys are smaller in dia. and turn the  gen. less RPM at a given crankshaft RPM.  These pulleys were called "Power pulleys" . It takes less horse power to turn them at speed . If I can remember correctly ,it takes about 4-5 HP to turn a stock set up and less to turn a "Power Pulley" , but it also cuts down on cooling and charging rate of your gen./fan.
        Did you state that your engine seemed to run on the hot side ? This could cause a hard start when hot after a long run on the road. With the summer temps we had this year, I wonder if this could have had a effect on your engine ,like the carb loading up, slow cranking speed etc,etc. Sort of like vapor locking.
        I'm getting pickey now.
    All of this above has nothing to do to the way you set your Timing. Its still 32 degrees no matter what size your pulley is.

You can leave the vacumn advance hooked up. I thought the degree marks were there on the pulley. If they are you can put a little bit of paint etc on the back edge to see better. Is this what you are talking about ?

Sorry, yes the degrees are one the pulley and putting a little paint just to see is what meant.. Thanks..

.. when I hold it wide open it goes up to 58 degrees..

Ron . . . back it off to 32 degrees maximum advance . . . 58 degrees will burn holes through the tops of your pistons if you take it out on the interstate and open it up for a few miles!  Until it melts down it will have a good bit more power than it "should" . . . but it will melt down!  Literaly.  It will look like someone took a torch to the top of the pistons.

IF you were to achieve the ideal timing for a gasoline engine, the fireball that starts at the spark plug would hit the top of the piston as it crosses top dead center.  If the fireball reaches the top of the piston too late, it's already started back down the cylinder . . . the fireball has to "catch up" with the piston before it can push on it.  This robs power and fuel efficency and makes the engine run hotter (don't know exactly why it runs hotter, but it does).  If the fireball reaches the top of the piston BEFORE top dead center, it "hammers" on it.  Since it has more time to burn, and it is getting compressed more as it is burning, you'll gain some power, but you'll create a LOT of heat at the top of the piston in addition to the hammering effect.

The big problem with trying to achieve "ideal" timing in an air-cooled VW is that you only have one timing setting and the rest is a mechanical centrifical and/or vacuum system that is built into the distributor.  As the engine speed increases, the spark has to happen sooner to keep the fireball from having to chase the piston down.  There are different advance "curves" built into different kinds of distributors to try to achieve the ideal timing for a particular application, but even the best aren't even close to perfect for all situations.  "Modern" cars are loaded with sensors and computer controls and can come pretty close to achieving ideal timing regardless of the outside temp., engine temp., rpms, engine load, etc . . . but with your old VW, you've got the built in advance curve and one setting.  So, you want your advance to be as close to ideal as possible at the place it can do the most good (or the most harm if it's wrong) which is cruising down the road at top speed.  Setting the timing to 32 degrees maximum advance will get you close to ideal timing running down the road . . . it'll probably be way off at idle . . . but what 'cha gonn'a do?  Set it 32 degrees maximum advance, lock it down and live with it.