Thanks Chris!
As an update, I installed an Edelbrock carb that was rebuilt to match the mild cam in my motor. Also replaced were: coil, coil harness plug, ignition wires, vacuum advance, cap, rotor, and plugs. The charcoal cannister was connected again, and all of the vacuum lines are connected/plugged. I ran the car through DMV inspection today and it failed again!
The HC readings were no where close (10x the limit at idle!), but the CO levels were much closer to the required limits. I received another 30-day tag, and I now have to take the car to an approved Certified Emissions Repair Technician to see if they can bring it under the limits. If not, then I must obtain an emissions waiver if repairs are made greater than $810 (which I will be above after this next shop visit). I am not sure if the waiver is perpetual or not. The tags will only be good for 2 years, so I am not sure if I will need to apply for another waiver or not in 2015. Presently, the cut-off for the dual emissions checks is 1981 or newer, but they will likely adjust the cut-off as time passes. Presently, my 1966 Mustang does not need to pass any emissions because of its age.