replace the cap/rotor. if the headers are glowing you have a problem with either a clogged cat converter or your timing is really really off. was the distributor pulled at some point?
get the motor to TDC and pop the dizzy cap off and see where the rotor is pointing. it should be close to #1 on the dizzy cap. it may also be possible that if the dizzy had been pulled that it was put back in 180* off.