I've had concerns about the wires you found cut since you mentioned them.
In CA, on pre OBD cars, they look for hardware and check tail pipe. I had a
Euro intake on my car, and the port for the EYE valve wasn't machined, so I
just bolted the valve on and ran the wire back into the harness without
connecting it, and they never caught it. Those cut wires may be for the
reference sensor, and if the smog Nazis see them, they may fail you on that
alone. Plus, without a functioning reference sensor, I doubt the car will
run correctly, and that may be the reason your timing is jumping around.
Like I said before, at this point, I would find a smog station that offers
free retests and go for it. They will tell you what is not correct if it
fails.

~Holland
On Mar 31, 2016 19:27, "damac2004" <damac2...@sbcglobal.net> wrote:

> holy cow i hope to have a success story soon but i am not quite there yet
> for smog.  i went ahead and checked the codes and found i got an egr
> error, igntion reference sender and knock sensor #1 bad wiring or sender.
>
> somebody told me i don't have a california ecu, does anybody know if all
> ecu's would throw that egr even if on a non california car?  i don't think
> i have to worry about it, just wondering.
>
> on the knock sensor both of mine are chipped up where the sensor bolts in,
> one of them has no covering on the whole run of wire, just metal strands.
>  just got a couple bosch new ones for cheap on ebay so will install those.
>
> the last one for the igntion reference sender brings up an issue i didn't
> know i had.  my car has no sensor on #4 wire and i found no connector in my
> harness but there is a run of 3 wires that was cut off.  does anybody know
> if this will effect how the computer runs things?  i have read it both ways
> searching.  i never noticed a problem with the car before i touched it
> except it was stinky and didn't get good mileage.  i don't even care about
> this as long as i pass smog.
>
> if i read right i also believe a car can have a 2 degree deviation from
> the stock timing specs so i think i might just take a chance with this car
> and set it as best as i can, even though the timing light jumps around.  i
> have talked with numerous people on each side of this issue as well.  some
> said their marks wandered, some said they don't.  hate to throw money at
> this car if i don't have to, but would enjoy making it right for the next
> guy when i get rid of it :)
>
> On Thursday, March 24, 2016 at 5:52:49 PM UTC-7, hollandphillips wrote:
>>
>> Two knock sensors means 2.0/9A block.
>> On the timing issue, there is something that needs to be disconnected
>> prior to using a timing light. I can't remember what exactly it is, but I
>> think it's a vacuum line somewhere. Again, that information is in the
>> Bentley. Once the whatever is disconnected, the timing should be steady
>> when viewed with the timing light.
>> The timing advance on Motronic cars is controlled by the ECU, which is
>> why initial setting of the timing requires disconnecting whatever it is the
>> Bentley tells you. They do connect a timing sensor to the number one
>> cylinder spark plug lead when running an emissions test in California.
>> Don't know if it's just for reference to the machine, or if they can
>> actually fail you if it's out of spec.
>>
>> ~Holland
>> On Mar 24, 2016 17:04, "damac2004" <dama...@sbcglobal.net> wrote:
>>
>> ok so ground showed no continuity to that sensor wire.  it does with pin
>> 7 i believe on the ecu connector,  so i guess i am good.  i kept getting
>> confused because people were talking about an insulated wire and im
>> thinking a nasty cable like for tv.  when looking these guys over as is,
>> they don't seem special looking to me.
>>
>> also i looked over the car again and i do have 2 knock sensors.  they are
>> on the front of the block close to each, closer to cylinder #1.  they each
>> attach to a harness connector  that goes into the loom and to the ecu.  so
>> if i remember right people said 1.8 blocks don't have 2?  yet i couldn't
>> fit the larger im shaft gear into this block that mates to the oil pump it
>> had the smaller block off plate hole?  so still not sure what i have.  in
>> included a picture down below.  hopefully i won't need to care.
>>
>> here is a link to video of my first cold startup.   for some reason it
>> took like 5 times to start like there was no gas, fuel pump was making
>> noise.  then it started right up.  can anybody tell if it sounds ok?  i am
>> now having an issue with timing the car.  i tried cold and after a warmup
>> cycle and i cannot get the pointer to stay still with the light on?  it
>> kind of lines up with the diamond and then it will shoot off a little bit
>> off one way or the other.  if i go further either way from where it is now,
>> when it shoots off it tends to go in that direction more.  i tried
>> connecting the lead near the distributor cap and at the head.  it seems to
>> like this spot the best but im not sure how accurate it is.  im wondering
>> what impact this could have on smog if im a little off.  also not sure if
>> this means my car is having troubles or if my timing light is messed up.
>>
>> https://www.youtube.com/watch?v=GB9yXn61pS8
>>
>>
>> <https://lh3.googleusercontent.com/-ld5z8T1qMBU/VvSAHUYZQFI/AAAAAAAAAOw/TN6T8t9LDnYh-Ek6Nwhyij9PhtpIeLAEQ/s1600/IMG_0583.JPG>
>>
>>
>>
>>
>> On Thursday, March 24, 2016 at 10:32:11 AM UTC-7, stevenarguello wrote:
>>
>> I think that your loom is good, I wouldn’t mess with it anymore. The
>> Bentley shows a circle around the signal wire where that ground meets the
>> O2 signal wire instead of a splice and that’s what you have.  Maybe check
>> to be sure that there’s no continuity between the ground and the O2 signal
>> spade connector.
>>
>>
>> On Mar 24, 2016, at 10:48 AM, Holland Phillips <holland...@gmail.com>
>> wrote:
>>
>> The Motronic ECU does store codes. Since the OBD1 spec didn't go into
>> effect until '95, code readers don't work on these cars. Connecting two
>> leads to the proper positions of the connectors under the shifter boot and
>> connecting a momentary switch to the other ends of the two leads, by using
>> the switch to short the leads for a few seconds, the codes are shown by the
>> check engine light flashing in various sequences. The Bentley explains all
>> this and has a chart showing what the various codes indicate. I don't
>> remember exactly where in the Bentley this procedure is, but it's in there
>> somewhere.
>>
>> ~Holland
>> On Mar 24, 2016 1:17 AM, "damac2004" <dama...@sbcglobal.net> wrote:
>>
>> sorry just to make sure we are on the same page.  you are saying the 02
>> sensor black connector is going into the loom to the ecu.  and the ground
>> wire attached to the firewall is loose and surrounding the 02 sensor wire
>> along the same path?  i am paranoid and want to see for myself and am
>> tempted to cut further upstream to see.
>>
>> i thought i read about the codes and bought a cord on ebay to convert
>> from a little plug underneath the shifter boot i believe that goes to an
>> obd reader?  i will try it if i read right after i get the sucker going,
>> had to rewire the main power and grounds.  many wires have fallen to pieces
>> just from touching them.  scary stuff now that i look closer.
>>
>> On Thursday, March 24, 2016 at 12:40:03 AM UTC-7, stevenarguello wrote:
>>
>> The picture looks just like what I thought it would, the signal wire is
>> the one with the connector, the one going to the ground is the shield. I
>> think that you're good to go.
>> I would have shown you my loom, but it's very different and I thought
>> it'd make things more confusing.
>>
>> Fire it up.
>>
>> One last thing, I'm pretty sure that your Motronic ecu has codes. I'm not
>> sure how easy they are to read or if they help at all.
>>
>> On Mar 24, 2016, at 1:29 AM, damac2004 <dama...@sbcglobal.net> wrote:
>>
>>
>>
>> i forgot to add this picture.  maybe i need to look closer but it looked
>> like the connector wire is exposed and touching that main ground leg.  is
>> it possible the connector has its own cover and is running inside inside
>> the ground run?  i can try and cut some back and look at it.  i was
>> expecting a special looking wire, my connector wire doesn't look special?
>>
>>
>> i don't really understand how to read the bently.  this is the only wire
>> i see connected in the 20 pages to the firewall ground on that side.  it
>> doesn't show a straight run to the control unit but it has a solid line
>> crossing into the shielded wire icon on the 02 sensor connected leg.  i
>> just assumed they were connected or else the ground wire from firewall side
>> would go nowhere?
>>
>>
>> is this a pretty common harness on other gas vw's of the same era?  i
>> wish i could see somebodies stock harness with pictures, maybe i can find
>> one at picknpull.
>>
>>
>>
>> <https://lh3.googleusercontent.com/-oSf6Tvpz5Xg/VvN7QYR455I/AAAAAAAAAOU/FVftHFgDN0AaCg98N1jFVFSj67xKPaOjw/s1600/IMG_0575.JPG>
>>
>>
>>
>> On Wednesday, March 23, 2016 at 5:21:42 PM UTC-7, stevenarguello wrote:
>>
>> So you bought a new 3wire O2 sensor? If so, the black is the signal not
>> the ground. (The sensor is grounded through the exhaust?)
>> After the orange connector the signal wire back to the ecu is a little
>> thicker because it's a coaxial cable, it has a braided shield around the
>> signal wire. This shield has a ground and I believe that's the one going to
>> the firewall. That's why they look like 2 wires fused into 1.
>> (I think, my loom is different.) If I'm way off, I hope someone will let
>> him and me know.
>>
>> There should be an extra female connector for the 2nd knock sensor,
>> unless they cut it off.
>>
>>
>> On Mar 23, 2016, at 6:30 PM, damac2004 <dama...@sbcglobal.net> wrote:
>>
>> hate to bug people but i'm just tidying things up with a new 02 sensor
>> and want to make sure before i start it up and time it.  i pulled the whole
>> harness that goes to the ecu just to make sure.  i do only have the 1 knock
>> sensor.  don't see any special shielded wiring.
>>
>> the 02 harness side  has a black ground going to firewall that goes to
>> the ecu.  a small area is cleanly exposing wires and the 02 sensor signal
>> wire connector is fused to this ground leg.  no sign of solder or cuts,
>> looks original to me?
>>
>> i also tried looking up my car in the bently and it matches a later gti
>> 91 chasis according to them.  it shows the ground location over there on
>> firewall rather than the engine block.
>>
>> i have the 2 white wires from 02 sensor going to stock connectors and
>> their colored wires into the ecu harness.
>>
>> bently shows the ground leg black wire and the 02 sensor connector black
>> wire making a left turn into that black ground wire.
>>
>> so it seems it is wired correctly?
>>
>> i just don't understand how 02 sensors work, not sure if that black wire
>> is a ground wire on all car applications.
>>
>> On Saturday, March 19, 2016 at 1:24:08 PM UTC-7, stevenarguello wrote:
>>
>>  The wire you’re touching looks like the O2 signal. In your case it looks
>> like the shield might have been pulled off and ran to ground. (That’s a
>> guess, could be like that from the factory) The red and yellowish (sorry,
>> I’m a little color blind) are the O2 heater. The 2 whites and the lead with
>> the electrical tape go to the sensor.
>> I think.
>>
>> There’s only one mounting point for a knock sensor on the 1.8, the 2.0
>> has 2. If you have 2 and they’re both mounted to the block then I’d say
>> that the block is 2.0. I know we’ve gone back and forth on this, but I had
>> the exact opposite happen to me my ’88 had a 2.0 (the PO didn’t know) I
>> found out when I discovered the second KS.
>>
>> On Mar 19, 2016, at 3:20 PM, Holland Phillips <holland...@gmail.com>
>> wrote:
>>
>> As Steve mentioned, the O2 sensor signal wire is shielded, similar to a
>> coaxial cable. It's basically a regular insulated braided copper wire of
>> about 20 gauge, with a braided shield covering it.
>>
>> ~Holland
>> On Mar 19, 2016 12:13, "damac2004" <dama...@sbcglobal.net> wrote:
>>
>> im pretty sure i have 2 knock sensors?  im attaching a picture of what i
>> uncovered from electrical tape.  looks like
>>
>> ...
>
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