When you were discussing things I was sure someone in the past had your pulley off the cam and didn't line up the marks putting it back. I didn't think it would run very well if it was that far off.
Evidently, being off a tooth is not a disaster but the change in performance is noticable.
With the retarded intake, you were probably pushing a little of the air/fuel charge back out of the cylinder before the valve closed. With the correct setting you may find you can burn more fuel/mile IF you use the new-found power.
I'd be interested to know what other things you notice.
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'96 965 with 16' wheels at 120K. Had '85 745 Turbo Diesel for 200K.
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