The rubbing block is normally in constant contact with the points cam, so if there is a gap on the flats it's not going to end up right.

Let us know what happens when you put another new set of points in, or the old ones back in (gap the old ones at .016" for starters). Be sure the new points look just like the old ones. And if you were cranking the engine with the cap loose, check for rotor and cap terminal damage, and be sure the rotor is installed.