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Yes -- all 240s from some '82s thru all '88s have the V/C ignition, although the white-capped Chrysler distributor disappeared by '84 or so.
I think vacuum leaks could contribute to NOx. I've found using propane while reading the O2 sensor voltage (signal lead disconnected from ECU) to work very well for leak testing. But IMO, plugging the ICU vacuum is worth a shot in any case. Here is my "canned" propane pitch:
I use Propane to test for vacuum leaks. It's less messy—and no more volitile—than carb cleaner or other sprays. Take the nozzle tip off a propane torch and replace it with some snug fitting rubber hose about 2 feet long. Practice with the valve to get a moderate gas flow (not a roaring blast).
With the engine at a warm idle, open the gas valve and poke the end of the hose around each injector for a couple of seconds. If the seals leak, you should hear an RPM change when the propane gets sucked in and burned.*
Do the same around any other suspected areas, like hidden vacuum hose ends and the intake manifold gasket itself.
To block the breeze from the fan, lay a piece of cardboard from the fan shroud to the engine
*If you use use a DVM to "read" the O2 sensor output voltage (O2 disconnected from ECU), you'll see the voltage rise instantly if any propane gets drawn in.
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Bruce Young '93 940-NA (current), 240s (one V8), 140s, 122s, since '63.
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