K, here it is step by step:
1.) read this:
http://www.thirdgen.org/newdesign/tech/promintro.shtml
2.) if still confused, read it again.
3.) repeat as necessary.
The 160deg thermostat is likely to be the big contributor to your bad mileage, especially in Winter weather. I'd consider going to a 180deg stat. Even if you adjust the software to compensate for the colder operating temps, most smallblock Chevy engines I've worked on like 180-190deg coolant temps and feel really lazy when run colder. Vizard books say 170deg is the optimum temp.
You also have a lot of cam duration for a 305, but maybe see what you can do with what you have before going into another cam swap.
Your transmission shifting isn't managed by the ECM so no chip params you can adjust, recheck the throttle valve cable tension as described in the tech articles section here.