I had to share this with you all before going to bed. Well since I didn't receive the CPS, I spent some time checking other possibilities this morning.

Today engine didn't start even cold without help from sparying into the intake. Then stayed running for few minutes until I pushed on the gas pedal and it died. Long story short: I started with opening the distributor cap which seemed brand new. Well it was not!! It had a good amount of depotits on each pole inside the cap. More than what I had ever seen before. There was a layer of moisture inside. Very thick and visible. I'm not sure if it was water or oil. I should have paid more attention before I wiped it off.

Cleaned, washed and dried in sun and put it back. Guess what? Problem is gone. It started over and over, cold or warm. I let it run for about 20 minutes. Turned off and acranked again in betweem so many times every time started and idled smoothly. Drove it to work in a warm outside temperature and came back after work at night. No problem or any signs of it.

Thank you all specially Mike for valuable comments. I have other issues which I will post soon. Not so serious though.

I think I will change the distributor cap, seal, and rotor anyways. So far so good.

I need to check later if it was oil in the cap wether it accumulates again over time or not.

Thanks again.
Sean

SL300 1992
VW Cabrio 2001
VW Beetle 1968