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Based on your symptoms I would say your powervalve is ok. Most Holleys now come with "blow out" protection in them now. Not sure about the 4160, but... I would try rejetting it. I would also recommend setting the idle and mixtures with a vacuum guage.
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My friends dad did this, and he said when he turned the idle mixture screws all the way in (LEAN) it didn't die, so he said I must be leaking fuel somewhere. But when I E-mailed holley, they said that I need to up my primary jet's to #64 instead of #62, because I'm running too lean.
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Where is your base timing set? How much vacuum advance are you running? I would say start at about 10 degrees mechanical advance and work your way from there.
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Again, my friends dad set my base timing @ 14º, and in drive, he measured about 19"hg of vacuum. Originally, I had my distributor hooked up to full vacuum, instead of ported vacuum, so my ignition was already fully advanced I imagine @ idle, I guess I'll take my carb apart today and put in the new jets...