The 1800 head could do with gasflowing. I had a mk1 with an 1800 and big valve head on it. When I fitted it to a 2 litre it killed the top end and fuel consumption. The consumption could have been the k-jet. I lost 10hp easily.
Another comment on big valves and the road, a mate had a similar spec mk1 but with std valves and in any gear he could get the jump on me, even with a couple of passengers on board. Only from a standing start was mine any better on the road.
At the track it was a different story and I just left him for dead.
Anyway, I'd go for a gas flow and leave the valves std size in a road car.
Out of interest what were the figures you got on the compression test?
I have not heard of any that have had bad top-ends, apart from valve guide wear.
Did you squirt some oil in to see if the rings were gone? And was the engine good and warm?
Gavin
EDIT read the post properly now.
If the head is indeed done then big valves is the next step. Don't go too daft with the cam spec to start with.
I would say the biggest power hinderence will be the injection, guessing k-jet. You should have the mixture monitored on the rollers and I think you'll find it runs weak at the top end. Fitting the warm up regualtor from a 16Valve Golf is a top mod, I might even have a spare in the garage. It has a vacuum connection that richens the mixture under load.
The igntion system is pretty primitive too. You need to run the dissy well advanced to get max power but then it ticks over at 2500. I took my dissy apart and ground the stops back on the bob weights to get more advance at high speed but still retain the 'normal tickover'.
If you have any questions about K-jet ask away. Or get a book on tuning and modifying Bosch fuel injection and read the living daylights out of it. A k-jet fuel pressure gauge kit is invaluable too.
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