Instead of looking for a quick fix try to do some real diagnosis. Poor low speed performance if not due to ignition timing or fuel delivery is an indication of bad valves or defective injectors. Improper mixture due to an O2 or temp 2 sensor problem can also cause performance issues. 
As for the vacuum retard as soon as the throttle is opened the timing should quickly advance if all is well. If the throttle is not set properly the retard/advance ports may not work as they should. For the vacuum retard move the hose connection from under throttle body and use a tee to connect it with the fuel pressure regulator vacuum line. This will ensure max vacuum/retard at closed throttle to get your basic settings and get the throttle plate adjustments out of that picture. Avoid the temptation to over advance the timing to make the engine feel more responsive. The burned valves aren't worth it. 

Dennis
 

-----Original Message-----
From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf Of Mike Riley
Sent: Tuesday, October 02, 2012 7:39 PM
To: vanagon@GERRY.VANAGON.COM
Subject: low torque

1985 1.9 engine MT  with 83k seems to have  bad  power up to about 2100  rpm  then it takes off with  lots of pep.
distributor has been oiled regularly  and the idle position switch is working properly  and it is smooth running.
timed via tencentlife method<did not help>
any ideas   any way to get rid of the vacuum retard at idle?
MIKE