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Power Loss on '89 100

My Audi 100 1989 has 78K miles and last six months or so it has
been slowly loosing power. The rpm seems to go up linearly with
no drop. The power does not seem to transfer to drive and really
drags on hills etc.

I have done the regular tuneup stuff -
change dist. cap, rotor, wires, plugs. Also, it has a new exhaust,
power steering and water pump. I took the oil dipstick while running
it stumbled but kept running. Taking out oil cap caused it to stall.

My mechanic is stumped. I hate to take it to dealer. He checked for
vaccuum leaks, timing belt, etc. and not found any problems.

Any help will be greatly appreciated. Any recommendations for mechanics
in Washington DC area will also be of help. If anyone has any time
and skills to help that would be perfect.
 Nick Kumar
 (301) 640-2029 (W) (301) 972-3188 (H) (301) 972-3588 (Fax)