Compression test was done with engine at operating temp and there was less than 10% variation between cylinders. And no, it has not been on the dyno - I think that is next. My gauge has been other Mustangs of a similar vintage with similar motors and gears with a lot more punch. Hell, I got beat off the line by a Honda Element the other day!!
I've played with the carb quite a lot but never done an A/F ratio measure, so that is on my list as well. Need to get a bung welding in beyond the collector.
Got your message on advancing the cam loud and clear! The shop says it may be worth a try and I know nothing about the theory behind it - why would you not do it on a street engine? I have to admit, I was very leary of the idea when it was offered. Seemed like snake oil instead of addressing the real problems.
Oh, I'm running 3.5 in the rear with a T5. Thanks to all for the advice so far - keep it coming

Steve