Ok, that's the original XJ ignition, so the 10M TCI is what you need. You have a XS cover over it though... I don't see a 'extra' wire; you should have a orange, gray, and black going to the ignition components.
These ignitions are not adjustable, so your timing is good as-installed. So the problem is in the carbs. So which carbs do you have? Are they the original XJ set, or did the '79 carbs come with the motor? You can identify them here: http://www.xs11.com/forum/showthread.php?t=35964
They probably need cleaning and adjusting/sync, a poor sync will cause your problem.
These ignitions are not adjustable, so your timing is good as-installed. So the problem is in the carbs. So which carbs do you have? Are they the original XJ set, or did the '79 carbs come with the motor? You can identify them here: http://www.xs11.com/forum/showthread.php?t=35964
They probably need cleaning and adjusting/sync, a poor sync will cause your problem.
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