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On my 1992 W201 2.6l, removing the R16 netted a noticeable "seat of the pants" performance improvement.
I have dyno'd many cars before/after mods and my "seat of the pants" meter is pretty accurate.
As per your post Chris, I believe this dis-proves your theory about post 89 models "not setting ignition to the old and most advanced value".
My service CD does state that the R16 affects iginition timing on the post 89 W201's (up to 1993).
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