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My project is a cherry condition, low mileage 1986.5 with a 7MGTE installed by the previous owner which he was never able to get to run. It has been sitting for about eight years. I had to remove and clean the fuel tank and installed a Walbro fuel pump in the process. The no start issue was found to be three burned/broken wires near the CPS connector. I am currently fighting a light load/steady cruise misfire or hesitation. As part of the diagnosis procedure I checked the ign timing. I found that I had to retard the CPS almost all the way to its full adjustment travel to bring down the timing to 10deg (jumper wire was in place while checking.) I removed and double checked CPS gear alignment and it is spot on. I removed the cam gear cover and the gear alignment marks also are spot on. With the CPS adjusted as such I notice a slight hesitation when leaving from a stop which would indicate to me a timing issue. Is it possible the damper may have deteriorated allowing the front pulley to slip creating a false TDC? I am open to enlightenment on anything I may have missed.

Things done so far (not necessarily for the "misfire")
Plugs - Autolite copper
NGK Blue wires
J tube modification
Cold air intake
3" from turbo to cat, dual 2 1/4" to stock exit location
Throttle body cleaned
Seafoamed engine via intake
Installed set of known good injectors
Removed engine wire harness to facilitate inspection and repairs (found insulation broken on wires to coil pack, repaired as needed)
 
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