You should probably be getting 1 to 2 mpg more than that.
Make sure the vacuum advance is connected to manifold vacuum, not ported vacuum. Manifold vacuum will have vacuum at idle, ported vacuum will not.
Advance the base timing to 14* BTDC. This is a better setting for engines that do not have emissions controls mounted. You might even be able to go to 16* BTDC without knocking, depending on altitude, gas, etc.