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Hey Bob,
If it's flooded to the point of leaking gas from the cylinders then I would think you definitely have a fuel related problem and not just a timing related issue. Not that the timing may not be off too but even with it off you shouldn't be pumping that much fuel into the cylinders under normal circumstances. That much gas in the engine can do some real damage to the bearings and cylinders as it's probably saturated the oil as well. I'd take a hard look at the oil and change it out if you have gas in it. It seems to me there was a similar thread here recently about this same issue being related to a cold start valve needing to be rebuilt. (I have a DME car so I don't have that issue). That won't fix the timing issue but I'd solve the fuel issue first if it were me so I didn't continue to wash all the oil and lubricant from the cylinders and bearings in the engine. If I'm not mistaken you have a fresh rebuild here don't you? I'd post a new thread to John Walker and Wayne and see what they have to say.
Dan O
84' Targa 3.2
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Dan O
84' 3.2 Targa
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