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I would strongly advise *against* starting over with a new engine at this point -- this one hasn't even been diagnosed, and that's another black mark against this mechanic. Be advised that Type 1 mechanics usually either assume that Type 3s are the same and miss the differences, or decide Type 3s are weird and terrible and try to change them into Type 1s. First, you need a manual, and you will get much further faster on this problem once you study it for yourself. It will also be a great help in communicating with us as you learn the jargon. The compression result is odd; I think the test should be redone after checking that the tester is using the correct tools. Maybe I'm just not sophisticated enough, but I've never heard of a mechanic taking the carb off and putting fuel down the intake to check for firing, that's just weird. I'd like to hear about the recent history of the engine. Has it been running in living memory? What was that like? If it's been dead, what sort of condition was it in when you found it? What's been messed with by previous owners? Judging from what you've written, your problem could be as simple as mixed-up plug wires or a misaligned distributor, and as complex as who-knows-what. But we'll need a lot more specific info on what's happening if we're to be of any real help with diagnosis. And it would be best if you did the testing yourself, so we're not talking second-hand info. You've come to the right place, and you've got sharp people here willing to help. Steven Ayres, Prescott AZ '66 KG1600 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ List info at http://www.vwtype3.org/list | mailto:gregm@vwtype3.org