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Congrats on passing the new stringent NJ regs. I just passed with my
84 turbo on Monday in NJ also. If your timing belt is loose I think
that could let your timing move a couple of degrees like that. If you
havent' reset the tension it only take a few minutes. You do need a torque
wrench but all you do is pop off the rubber plug on the timing cover.
The older cars use a 17mm nut. Loosen the nut one complete turn. Now,
retorque the nut to 37 ft lbs. If its not this then I would second the
suggestion that the dist may have worn bushings.
Dave 82 242ti
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