Volkswagen Repair: No power beyond 1st, though fully tuned, real stumper, vacuum hoses

Question
Mr. Schauerte,

I have a problem with my 82 stock engine Vanagon that is a real stumper.  I've spoken with several VW mechanics and none have helped me thus far.  She (I call the van she) has even been in two garages for a total of over two months with no solution.  If you have any suggestions I sure would be greatful.    

The problem:  I have no power past first gear.  Second gear produces slightly less power, and third and fourth are useless (unless I'm going down hill).  What I've done so far.  New parts include points, distributor cap, rotor, plugs, wires, air and fuel filters, fuel pump and relay.  Plugs have been gapped twice, and points have been gapped three times.  I have adjusted the timing and throtle.  She starts just fine, and doesn't back-fire.  In fact, all seems well until I need a little power.

Other things wrong that might be related, though I don't know how:  Minor oil leak from somewhere in rear of engine, and fresh air blower keeps blowing its fuse.

Any suggestions?

Please, Please help. Thank you.

Stumped in Tennessee  

Answer
What condition is your clutch disc in?  Is it slipping?(would give you that gutless feeling)You can hear the engine speed increase as you try a hill in a gear higher than you would normally try it...and don't feel it on your butt...runs like an automatic.  No problems there?

What do we do to get more horses from any motor?  
1. Up compression
2.  Make sure she is breathing easily
3.  Increase intake valve size
4.  Advance the timing
5. Throw in a hot cam
Not in that order, but basically thats what we do, right?

First off, make sure your vacuum hoses are fitting good and snug...pull a hose off and pinch the end between your fingers...if you can't, cut off an inch and try again.  You don't need to suck in any extra air.  A way to check over the whole motor is get it to idle and spray  "disc brake cleaner" over intake joints(gaskets, hose ends or bends in same, connections ---to see if the idle speed changes.  If it does then you got a leak that is drawing in extra air leaning out the fuel mix.
 If this is fuel injection, throw in some injector cleaner in a tank of fuel and run it thru.
  Maybe, try fuel from a different station..fer awhile.

Now, do a compression test---
 take off the air cleaner to do it and inspect the unit as well
... and see how even the compression is(also how high).  Compare that to what it is suppose to be.

Check the valve lash on both the intake and the exhaust.

Also, is the exhaust pipe banged up or restrictive more than it should be(breathing system)

If youlook at the tail pipe, it should tell you how rich you are running.  Stick your finger in the end and wipe it on the pipe wall.  Lots of black-excess fuel(and oil).  Is the pipe greyish and hard--your running lean(probably too lean)

I suggest you also try the timing.  Loosen the distrib. and rotate it and advance the timing 10 degrees or so(fiddle with it) it can only improve right?

What color are the plugs?  You may want something hotter.