If there is a better place for this please redirect.

Just picked up a 1994 850 turbo. It had busted heater core and info that the car was driven till so hot it lost power possibly more than once. Ran a compression test both dry and wet and got a fairly consistent 60 PSI on all 5 cylinders. I thought the cams must be out of time but after getting a visual on the belt it all lines up but I did not trust the paint pin marks on the cam gears so I pulled the distributor and cam position sensor and can see that the slots are lined up horizontally with the Intakes slot being high and the Exhaust slot low (see picks).

Any suggestions?

 

The vehicle has more than 200,000 miles on it.

 

can you post a pic of the cam gears? seems to be in time to me

 

This pic is not dead on but everything lines up when it is dead on.

 

Pretty much dead on. These cars have soft aluminum heads, they do NOT forgive over heating. I would say that the head is warped and the head gasket is blown. I'd be shocked if not.

Usually you'd get some good numbers and some low numbers so all being low is a little strange. Have you drained the oil to see if some coolant mixed in there?