tiny, sounds like if your car was running strong, you should be putting down 260rwhp, give or take 10rwhp. that should net you close to a 14.0 at say 100-104mph in the traps. w/ the IS300 wheels and tires, you should be cutting 2.4-2.6 60' times. Its not a bad setup, your base timing is too aggressive though. its more than likely that you dont ahve enough fuel to compensate for your bumped timing. its probably running on the lean side, knocking because the ecu is advancing the timing too far from the reset base of 15* BTDC. when this happens, the ecu will see the knock and pull the timing back down to base advance. this is severely limiting your power. when you are raising the boost on the stock turbo, stock ecu and limited fuel, you should PULL timing out of you base setting, say pull it back to 8* BTDC. this will allow you to stay further away from the Knock threshold than you currently are. especially using pump gas with the lack of fuel control/volume isnt going to help your situation.

Bill's old white 87 was a VERY VERY early 87. it had a completely different IC pipe route setup and a few other oddities. but for the 86.5 Model year, there were no turbo versions sold. if the Title says 1986.5, it was not a factory turbo. the Pre89's come with a firewall build tag. itll tell you what rear end your car came with and what tranny it came with. If its a real 86.5, itll say "W58" on there. theres also a sequence for the rear diff gear ratio, which will probalby check out to be a 4.30 if its a real 86.5. If this is the case, your car is a "SPORT" model, which explains the TEMS. This means your old rear end was an LSD version of the 4.30 gear ratio. This could be valuable to the right person; even though turbo cars like taller gears because it loads the engien more and produces more shaft RPM from the turbocharger for higher airflow rates.

hope that helps... also check to see if you have a factory oil cooler bolted to your car, itd be located right below the stock coolant resivoir. also check to see if you have a GTE oil filter mount; if your oil filter screws directly onto the block, its still an NA block. all the GTE stuff bolts onto the Na block, so its possible you might have a NA block converted to turbo stuffs.