I Agree with Triodeluvr and RR.
Since we know what its doing now, Get a test kit. Its always good for something you don't know the history of. That would eliminate the head gasket leak or a crack somethere.
Timing Tape....There are seveal cheap kits. I would suggest getting a cheap one since it'll come off in no time if not properly applied. Get close to TDC, and mark it on the tape with a silver marker. I would now pull the distributor cap and just lay it to the side. Grab your rotor button and twist it. The rotor should move one way,you should see these little spring stretch out and when you release it, it should return to the original position. This is your centrifical advance.
If you have a hand held held vacuum pump(Like the ones that help you bleed your brakes), hook it up to the hose that hooks to the distributor, operate the pump a few strokes, you should see the inside of the distributor turn slightly. This is your vacuum advance. Both the Centr. and Vac. advance should work smoothly. If not make it so they do. If you see alot of dark crap down toward the bottom with rust, I would get a rebuild distr. (for a piece of mind, since you don't know how the car has been treated) since they are dirt cheap for the SBC motors.
With your tape on, and your newly marked TDC, you should be able to time her and see Exactly what you have. Shoot for 12 to 14 initial. I'm making this kinda simple for you since I don't know your tuning skills. As you slowly rev the motor you should see the timing change on the tape with the timing light shown at it.
Hopefully, just the timing is too low causing the motor to heat up....we'll be here to help you out, just take your time and be safe. Keep your timing light out of the rotating pieces/parts....