to 86560sl:
question for you, just to see if you have the exact same problem.
When the car is HOT (after you've driven for sometime) and you rev it up to 2000rpms and hold it for 10 seconds, then go down to 1300rpm and hold it for another 10 seconds, then abruptly drop the gas pedal and see if it stalls.

to dkveuro:
First let me thank you again for spending all this time to help me. Second let me say I am sorry for not following your EXACT advise because that's what fixed it. Let me tell you what I did please give me some feedback:
1. Found a bypassed valve/solenoid (on the driver side fender well, went from intake manifold to this solenoid (which has an electrical plug on it) then to the retard portion of the distributor module) so after finding out that this thing is only good for the stupid California Emission Control I capped the whole line off because it was constanly retarding my timing. The stalling was 60% gone, but still wasn't fixed and still ran weak at startup........
2. Then as per dkveuro, I checked the timing when the car was HOT (advance plugged) and it was about 2 or 3 deg (stock should be at 5), since I am at 5500 feet I added another 5 deg to the and ended at up 9deg. Then test drove the car and could not stall it, but it still ran weak on start up and I could still stall by holding at 1200 rpms and dropping the gas pedal.
3. I turned the mixture screw about 1/4 degree (from 12:30 to about 3 o'clock) and then test drove again. When I initially started the car black smoke came out of the pipe during idle (so running somewhat rich), but when I took off it had a lot more power to the point where the back tires actually span on take off. And it didn't stall at ALLL!!! YEAH>>!!!!!
Conclusion: My mechanic is not a very good one...... I am wondering if I am running a little rich and what the gas mileage should be????
Should I do anything else, please let me know. Rpm in drive is about 700 and in park about 900.