Set the points gap as follows:
1. Remove the sparkplugs, if you are going to turn the engine with that big nut by the points. If you pull the crankshaft backward here (CCW direction) with the plugs in, it can bend the spark advancer's mounting shaft a little bit: when this happens, you will see the spark timing on the 2-3 points "jitter" about 3-4 degrees when you shine a timing light on it later.
2. Turn the engine until you see the "T" mark for the 1-4 points, then 90 degrees CW (to your right) further. This is the "high" spot on the points cam. Set the gap at .014" right there.
3. Turn the engine (crankshaft, that is...) another 180 degrees CW (1/2 turn) from that spot, then set the 2-3 points to the same .014" gap.
This will get you pretty close.
The mainjet in your bike is too big, if you have stock airbox, K&N filter and [any pipe, won't matter much]. It should be in the 105-110 size range. Someone was 'playing' with it before you got it, if a post-1972 750 has jets that big. The last 750 that came out with 120 mainjets was the K0 in early 1970, and THEY were too rich back then, causing fouled sparkplugs.
The "skipping" sensation you are feeling is the engine going from a decent fuel mixture in the lower speed range to a too-rich mixture when the mainjet starts working. Just back off a little on the mainjet, and the skipping will go away, and your MPG will improve.
The stock sizes are #40 pilot jet, #105 mainjet, and 7/8 to 1 turn out on the air screws of the carbs.