I've been trying to figure it out for awhile, but here's the deal. I've done a valve adjustment, set my points and timing, put in new plugs and wires and a new cap and rotor. Car is a 72 1.7L

Known issues:

1. Compression on #2 cylider is about 115, other 3 are 130, 135 and 140.

2. When I took out the plugs, 1 and 4 were a brown sooty color, and 2 and 3 were sooty, but black.

3. gnarly exhaust leak (speaking of which, what's the recomended way to replace it? I know Jim's answer, Triad.)

Carbs or FI?

Still got the FI

re-check your points.

typical of weak ignition.

or switch over to pertronix. which is what i did.

Agreed on the weak ignition.
Through some fire down them cylinders. While you are at it get some Magnacor wires.

When running does your coil run hot? Could be a sign of a diseased coil. You said

you have points and changed them, but you did not mention the condenser. A sick

or dead condenser will make your car run like sh!t.

I've got a new condeser sitting in my bug, I'll throw that on. I've actually tried two different coils. I have a bosch blue that I thought was bad so I replaced it with a pretty cheap one, ran the same afterwards. They could both be bad though, they do get a might bit warm. If my dwell angle is right on, then my gap should be too, right?

"If my dwell angle is right on, then my gap should be too, right?"

Nope. Check the gap too. Dwell just measures when it's closed. Gap could be any value.