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How "peppy" should a rebuilt redblock feel?

Not trying to duplicate a turbo power necessarily, was kinda hoping for like a low 17 second car. If I wanted something genuinely fast I wouldn't have bought an NA 240 wagon lol.
 
in your original post you mentioned a leaking exhaust manifold and a 2-3-2 error.
You need to fix those. any leaks between cylinder head and lambda sensor will throw off lambda sensor readings and those false readings will be fed back to the ECU. It might even cause the engine to run in some sort of limp-home mode.

after you have fixed those things, try again.
 
In addition to what the others said, the VX cam made my 87 feel pretty gutless around town and I think even at higher rpm it wasn’t much better. If you advance it a few degrees it should help improve torque, but I’d be curious what you thought of the engine if you had the same camshaft in it to compare the rebuild on a more back to back comparison.

While you had the motor apart was definitely the best time to shave the head and install a thinner head gasket. If you’re up to doing it again, it needs to be done if you want more pep!
 
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