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When I suspect a plugged exhaust, I FLOOR it, and be ready to lift my foot if it revs up like it should. If it only revs up to around 3000 ( throttle WIDE open ) and wont go past, the exhaust is usually restricted. It can seem fine at smaller throttle openings, but as you open the butterfly further, you reach a point where you begin to lose power.
I stress, the test won't prove anything if the pedal is not opening the throttle all the way. Or if there is a choke closing off the intake, extremely dirty air filter, mouse nest etc. (Mouse nest could be on intake or exhaust side)
i don't like the sound of that WOT test. the LTD i used to have had a cat melt down, and it was an absolute dog at lower RPMs, but made more power as the RPMs got higher. i never found a point where it dropped off at higher RPMs compared to lower while in the same condition.
you raised a question about the timing - if its not right, that could cause severe loss of power, most noticeable under load. pull out the timing light and make sure its set properly at idle, and make sure it advances as you rev it up.
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