What are you running for ignition, CIS-E or Motronic? Assuming it's CIS-E, you need to check to see if the RPM dependent ignition advance is working, and then the vacuum advance, in that order. This can also determine if there's a problem with the knock sensors or their control unit. Follow the procedure starting on page 21 of the ignition section in the Bentley. But before you do that, do you have the correct distributor? The Motronic distributor is different from the CIS-E one. It's really starting to sound like you may have an ignition advance issue.

--Holland
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