That sounds alarming <img src="/forums/images/graemlins/scared.gif" alt="" />
Must be a valve problem over all...put in new pistons and rings in honed cylinders and the head has probably been shaved a couple of times. Maybe my compression gauge isn?t the best either, some cheap Equus with a home made tube so it reaches down:)
I?m pretty sure that the valves were correctly set last summer and I haven?t driven it that much.

>>>*I have been watching this thread for awhile, time to mention a couple of things.

First, accuracy is important in testing the cylinder pressure, other wise it is just a balance test. In the old days with the equipment we had then and the manufacturing tolerances at the time, we considered 20% variation to be normal.

In today's world it should be within 10% and I have tested many 22RE engines that cranked within one pound of each other.

Your heading tells the likely story. Sluggish with poor mileage. Your compression numbers are low enough to affect that some but not cause it.

So more likly a rich condition. Rich will demonstrate as sluggish, poor upper RPM response, poor mileage. Lean typically will spit, hesitate, or just won't go.

An exhaust analysis will offer an indication, if the reading is high then she is likely rich.

Another possible is the ignition timing isn't advancing properly, put a timing light on her and bring the engine up to 3000 RPM and see what it reads.

Still another one that is rarer but possible is the dampner timing mark slipping. This would mean an inaccurate setting.

The basic causes of poor top end are inaccurate timing or too much fuel...Of course if the valve seal or rings seal are poor, no amount of tuning will cure that....*EB

Hi Ted, good to have you on this problem <img src="/forums/images/graemlins/patriot.gif" alt="" />
Tomorrow, I'll try the timing at 3000 rpm-what am I looking for there? I?ll also try and analyse the exhaust fumes at a shop later this week.
The other day, I advanced the timing back between 8 and 12 degrees and it was a bit better if anything and when I moved it towards 0 the engine ran much worse so I think I?m right on 5 degrees now.
Regarding the rich condition, that sounds very possible, when I removed the plugs they were all black and ugly...but with the new O2 sensor and the leakage just near it fixed the plugs look brown and nice, just a bit black on the bottom ring.
The screw on top of the t/b is the air screw, right?
I turned it almost all the way out to give her as much air as possible but no notable difference and the air filter is brand new...is there any other way to leanen the condition if I?m rich?
Thanks <img src="/forums/images/graemlins/cheers.gif" alt="" /> Andreas

checked the valves today...not that bad...I just made minor adjustments and on the 4th cylinder they were OK <img src="/forums/images/graemlins/confused.gif" alt="" />
That?s where the compression reading was the lowest.
Also checked the timing at 3000rpm and the timing mark advanced back near the large bolt on top of the oil pump.
I?ve got an appointment at a shop tomorrow to check the exhausts. Is there any way of leanening the combustion except the screw on the t/b???Any other ideas???

Updates:
The emission test came out great, readings as a brand new car:) -> not running rich
Compression test with a better gauge: around 180 psi on cylinder no. 1, 2, 3 and 170 on 4th -> compression OK
As before:
New cat converter
New O2 sensor
No exhaust leakes
Timing @ 5 degrees
Still no major improvement...I give up for now <img src="/forums/images/graemlins/zombie.gif" alt="" />, unless anybody?s got any other suggestions
I thank all you guys for your inputs <img src="/forums/images/graemlins/cheers.gif" alt="" />

Well, I have noticed fuel filters clogging faster on vehicles over here... How old is it? Might want to replace it anyway.

Next up, Octane ratings. The EU system would actually convert regular unleaded down to 86.8 Octane. You live how close to sea level? If under 200 meters, try mid-grade (super).

Did the poor performance begin when you rebuilt the motor? If so, then maybe you did something wrong, like not install the timing chain properly. The marks on the chain need to line up with the mark on the cam gear, at top-dead-center.

The fuel filter was replaced last summer and I?ve only put 2500 miles on it since then. I live at sea level (500 yards from the sea) and all cars I?ve had have run on 95 octane and they?ve worked fine, maybe I?ll try 98 next tank and put in some injector cleaner to clean the system.

I got this engine from a junk yard, it had 20k on it. The block and crank was pretty much all that I used from that engine. I got the complete overhaul kit from engnbldr. The intake was from the engine that was in the truck when I got it. The problem is that that engine was also beat up w/ cracked timing chain cover wich resulted in water in the oil and oil in the water so I never drove it. So basically I?ve never driven this truck w/ a perfectly working engine:)
Regarding the performance, it?s been like this since I first fired the engine up after the re-build...I follwed the FSM to the letter and I?m 100% certain that the timing chain was installed right, the chain has two bright links that should allign with the notches on the gears and if I screwed that up... <img src="/forums/images/graemlins/drunk.gif" alt="" />

New updates:
Emptied a bottle of red line fuel system cleaner before I filled the tank (fuel consumption on last tank was 13,5 mpg) Won?t hurt since the injectorns never been cleaned and balanced, wich was impossible to get done in Sweden.
Also sprayed a can of carb cleaner over the vacuum hoses and the intake, no change from the slightly rough idle...
Tried to pull the engine codes, shorted TE1 and T1 connectors and turned the key to "ON" and the engine light just kept flashing with a rather fast frequency and the same intervall...does this mean OK?
But when I pulled the spark plug wires, no. 4?s wire came loose from the connecting metal. Could be that there?s been a bad connection on that since I replaced them last summer. Gonna buy a new set tomorrow along with new plugs, also inspected the distributor cap and rotor, as new.