1976 454 Limping on 7 Clyinders?

[savatreatabvr]

At first it smoked after running a while so I adjusted the valves, it seemed to make it smoke worse but after sitting for 2 days I drove it 60 miles round trip and no smoke but now it seems to run on 7 cylinders but not all time, I pulled plugs wires one at a time but not much change in the way it runs. I swear this things possessed! It's always idled low and rough but now since it doesn't smoke I'm thinking it may be the distributor causing it to run this way? I've got a mysterious orange wire coming from the distributor to the fuse box, any idea's one what it is for?