Finally......Here's the page I've been looking for so long. This guy has the best explination of why you see losses with a dynojet with a gear swap.
scott this is what I was trying to find a while back when we had this same conversation taking place.

http://www.shane.roberts.net/dynojet.htm

mattback: you got backwards bu i know what you meant, the dyno measures torque only, hp is a derivitive of torque.