318 running bad

ok, so i checked the timing and it was at 10*atdc. i set it back to 10 before, and it runs much better.however, it doesnt have the same power as it did before the tune up. the timing chain is worn and does vary the timing a little. is the chain the culprit, or should i change the timing to something else?

It is not neccessarly the main culprit, but it very well could be and more than likely is playing a part in the issues. The nylong timing gear wears down over time and the link chain stretches out, making for erratic time. Eventually, if it gets weak enough, the teeth will strip off, either at higher engine speeds or during start up, leaving you stranded and possibly with some bent valves. I dont mean to sound pessimistic, but this is good info to know about 318s. This is there one main reliabilty weak link, per say.

This can be cured by replacing with a double roller timing chain and steel gears.

Also, do the systems of power loss and or rough running occur more frequently when the motor is warm, cold, or both?