Check and clean the grounds first for the electrical issues.

My 39 shifts the same as yours. I did lubricate the cylinder as covered in the shop manual and it seemed to help. If I am remembering correctly I introduced oil through the line that goes to the filter on the frame. Better look it up to confirm.  

Dave

To expand on my story a little more to get some opinions. I had the car at a restoration shop because I felt I was getting water in the oil. They done a test and the head gasket was blown. They pulled the head and installed a new gasket and now I have several issues. Number one the car was idling way to fast and changing the idling screw done nothing. Finally, I straightened the throttle cable, so it was a bit longer and the issue is fine. Just a side note, I have young men working on this that have no idea of the operation of a 47 Chevy. They do very nice work. Next my main problem is that when I drive the car it idles fairly well, but not quite right, but on the road it continually does what I refer to as surging. Do any of you feel that valves being to tight may cause this. I had the repair shop work on the wiper motor while they had it and I thought maybe I had a vacuum leak so I disconnected the wiper motor and blocked off the vacuum hook up and it changed nothing.  The car ran real nice before the repair work. Another thing a friend took notice that the distributor moves very slightly while running. Is this normal? I have nothing to compare it to. The next item is the shifting I mentioned earlier. I have not had time to try the addition of oil yet. It is amazing how an 81-year-old is so busy. Any ideas would be greatly appreciated.  

@clarence-w-forsythe check if the intake rings are on the intake and the exhaust/intake gasket isnt absorbing gas. You can test by spraying carb cleaner where the intake meets head and if it surges then you have a leak. What if you adjust the air mixture on the carb only without moving idle screw, does it die then? Might just need a carb adjustment. Check the clearance on valves. The distributor shouldnt be moving at idle, check if the clamp on distributor is tight.

Thanks I will try that.

That is excellent input. Those alignment sleeves can be a bear to get just right. If the mechanic hasn't ever dealt with them and they're not seated right, that may very well be your issue. Since the problem wasn't there prior to the head R&R, that's a good place to start.

@clarence-w-forsythe here are some pictures so you can get an idea of what they should look like. What i have done in the past is pull the rings slightly out of intake so its easier to mate to head. If you dont have these its impossible to align them perfectly and the car will never run right. 

Tried the carb cleaner this AM and it has no effect on the engine.

@clarence-w-forsythe then i would check the valve clearance. You can use this website for reference 216/235/261 Valve Adjustment Procedures. Check your timing too, the distributor should not be moving at idle, only moving (advancing) when on load.

The distributor on the 235 in my 53 wiggles at idle. I've been told it's common. My 216 was rock solid.

@tiny youre probably right, ive dealt mostly with 216's & 250's. I guess the question is did Clarence notice the wiggle at idle before?

I can't honestly say that I did not take notice to it wobbling before but feel sure it probably always has. It is the sort of thing you don't take notice to until you have a problem. Now that I have checked the manifold for a leak and have no issue there, I am leaning toward valve adjustment. I don't know how it was done this time. When my Dad and I done it many years ago we done it with the car running. Everywhere you look they explain doing it not running. What are your thoughts on that. My Dad always said to add .001 to the recommend clearance as these old girls liked to burn valves. The problem today is there are a lot of things I can no longer do and the old guys that knew anything about them are gone. The next trip back to the restoration shop I am going to stay there and do some coaching. 

Looser is better than tighter to a point. I remember Gene saying he preferred to do it with the engine running. I have the tool for that but have never done it running. Deve's site has a good reputation for accurate information. Another I trust is Tim Lederman's site. http://1954advance-design.com/

@clarence-w-forsythe @tiny, ive done it running before as well, we added i think .001 to each, but this is on a 216 that was rebuilt in the 80s and had some mileage.