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Most likely belt slip. I had slip issues with a 3.8 pulley on the dyno because it wasn't adjusted for maximum belt wrap. 3.2 would be worse. Get a tensioner at a minimum or switch to cogs with a 3.8 front pulley. Also, get a dang fuel pump and ADM module or Boost-a-pump. My duty cycle was about 95% with the stock injectors and a 3.4 pulley. No need for MSD wires, the stock delcos are fine, unless they are old, but I see that you changed them already. TR6s are ok, I have the Iridium version, TR6ix, and I run 10.5 psi of boost. Boost goes up to 10, then back down to 8 because the belt slip probably begins around peak torque. The torque isn't just going out the rear of the motor to the trans, it's also going out the front through the crank pulley.
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