Thanks Frank. Very thorough and valuable. I am going to focus on timing issue for now :
So the burn marks on distributor cap between copper contact points means that I need rotate the dirtibutor, making sure that I follow your guideline? I would like to fix the timing before I replace the cap and rotor.

__________________
Zorin

'88 Benz 420 SEL
'79 Porsche 911SC ('87 Carrera Engine)
'00 BMW 540 Sports Package
'99 Land Rover Discovery

86 300E - Manual (sold)
88 260E (sold)
84 944 (sold)