Well, maybe I gave a wrong description of the symptom. It is a vibration that is actually driving me nuts. It is most aggravating at highway speeds. First I thought it was a tire/wheel bearing problem of some kind. But the tires had to be replaced along with wheel bearings (those did produce symptoms, which were cured with replacement, but those were not the vibration in question). Then I started suspecting axle shafts, torque converter, etc. Then I finally noticed that the exact same vibration is present at idle. It is least noticeable in neutral. As soon as the car is put in gear, the vibration increases. It seems to increase with RPMs, not just the speed (although its not as bad when revving the engine in Park, or Neutral). The wheel bearings were replaced shortly after the distributor (along with plugs, wires, etc.) I was expecting a smooth ride after that, but here I am. I figured that the vibration from the tires and bearings was masking the engine problem.
The idle did smooth out noticeably after the throttle body was cleaned, but that was it, the high RPM/speed vibration did not change one bit. It also sounds like there is a surge of a sort (not a steady engine hum, this made me think that this could be torque coverter shudder, but the transmission has been flushed, fluid is fresh, and it shifts almost flawless - as flawless as a transmission with 137,000 miles on it can). Of course, this "surge" is not all that obvious, you have to listen to it (but I don't believe its my imagination).
On top of things, there's a "thump" at the start-up. Feels like there's a late spark somewhere, or something.
In short, the engine cranks, "thump" at start up, somewhat rough idle (but this IS an old and tired engine), idle speed withing spec (700-800 RPMs), vibration when put in gear, vibration increases with speed/RPMs, slight "surge" (speed/RPMs don't change a bit) at cruising speed. Good acceleration, mileage.
Oh, and I did replace an O2 sensor with a Bosch unit (Bosch was in the car when I got it, and it ran fine).
The old distributor had to be replaced because the Ignition Control Module (internal part of the distributor along with the coil) went out on it, so the engine won't run with it.