16V Problems... Part 18 - Please help an idiot...

[rhock99@epix.net (Ryan H)]

If you don't want to read this whole thing, please at least read my last paragraph.  I need help!
As many of you may know, I've been having problems with my car going into "limp" mode, where I have no power from the timing being retarded... Well, I did some experimenting tonight and pulled the vacuum line that goes to the knock box controlling vacuum advance (I know, probably a bad idea).  Anyway here's what I found:
1.) The car still goes into limp mode, although it's not NEARLY as bad, and when it runs normal, it's MUCH faster than before, telling me the timing was ALWAYS being retarded some.
2.) The car spits out alot of smoke @ WOT according to my buddy - could I be running so rich that it's retarding my timing?  My Scirocco never seems to use any gas, though.  Anyway, running rich wouldn't affect vacuum advance, would it?
3.) Obviously, my electronic advance is getting a bad signal too, since it still had low power.  Could my engine really have a problem?  Everything runs normal, but why would vacuum advance be a problem?  Isn't that just vacuum from the head?  Could my oil pressure be going so high or low that the vacuum advance gets a bad signal, and also causes the electronic advance to get a bad signal too?
4.) Could leaving the vacuum line from the engine open (oops, forgot about that) be causing the electronic advance to go wacky, and my problem is simply a vaccum leak (I wish)?

OK, let me sum up my question... Why would BOTH my vacuum and electronic advance on the knock box be getting bad signals?  It's definitely not the knock box, since it runs much better with vacuum unplugged.  New knock sensor, too.  What parts are responsible for the car running in open vs. closed loop mode (so I can test more)?  O2 sensor, coolant temp. sensor, DPR, and ????

This problem is getting annoying, especially now that I've tasted full power.