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I beleive when the actuator is working, you can move it by hand. Mine doesnt, and I have no difficulty starting at 34 F...It has never got colder than that here, so I don't know about lower temps.
To do manual timing advance, move the lever the cold start dealy should attatch to rather than turning the injection pump. There is a fair chance the pump was mistimed by the last person to change the belts I suppose. there are a few mostly self taught 'experts' on the board, and VW diesel mechanics should have no trouble adapting their knowledge.
There is a discussion group at:
http://lists.subtend.net/mailman/listinfo/d24
I too use an 87 C stat. seems fine.
Have you made sure there are no air leaks in the fuel line/filter? fuel drainback, even very slight wil make cold starts dificult.
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