Thanks for your interest. I think I may have found the root of the problem. I checked the timing marks on the crankshaft pulley. They are marked as 30 and 32 degrees. According to Wayne's book it should be 38 @ 6000 rpm. 6 degrees retarded by the looks of it. This is probably where the power is going. I also checked the part number on the distributor. It is 0231 184 004. Will check that that is the correct item too.