It kind of sounds like it's running on 3 cylinders. Does the plug in the cyl. that is squirting oil out of a hole look like it's been firing? I'd do a compression check on the engine if you haven't already. You may have gotten the distributor situation tightened up enough to run and are now seeing a separate problem. The play in your distributor looks concerning. I just went out and check mine and there's virtually no play.
ski
ski