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Not sure how that would work, as the engine would need to be running so as to draw in the fumes. In general, however, cigarettes and engines don't mix. An unlit propane torch or a can of carburetor cleaner work pretty well.
Low but steady vacuum could also be indicative of improper timing or low compression. Maybe rule out a vacuum leak for now if there are no driveability issues. Have you done a dry compression test since the rebuild?
Smoking an engine involves removing a vacuum hose and running smoke into the vacuum system/intake with the engine off. Any leaks will be obvious as smoke pours out.
I just smoked a Neon today that was idling ridiculously high. Turned out to be a cracked intake duct. We use a smoke machine at work, but I've heard of guys using cigarettes in the old days.
At iggy: Tore down engine but did not remove cam or crank--all rings still working well--crank bearings good, new timing gears and chain, cleaned the hell out of the engine, new gaskets for entire engine, stock intake, 2150 2 barrel motorcraft, stock exhaust manifolds to Y exhaust single muffler. All vacuum lines are connected according to a diagram for my year and engine size (390). Removed the smog set-up except for the EGR valve (I did block of the EGR--sorry FMC--cause I needed the spacer for the carb.
PO mangled the harness, so I switched to a 1-wire HEI dizzy. New ignition switch as well.
Changed trans filter/fluid. Thinking I may need to adjust the modulator...
I'm sure there is more; it took me about 7 months to do everything.
Does the 1 wire dizzy have vacuum advance? That really helps fuel economy and other stuff. If it does it will have a small vacuum line hooked to ported vacuum on the carb. Also, where is the timing set at idle and do you know how much mechanical advance the distributor has?
Yes, it has vacuum advance and I have it plugged it in on the side of the carb. It is very close to the auto choke. According to diagrams, that's correct.
I did not adjust the mechanical advance because the dizzy did not come with adjustment weights, so I just dropped it in as it came. Set timing at 10 degrees btdc.
I'm gonna rent a compression tester from O'reilly's tomorrow. I'll report back.
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