After finding the coil problem, the DZ 302 was running much better.
On the dyno
After finding the coil problem, he did about 2 more trials.
Trial 1: Max Torque=332 at 4900 rpm, Max HP=354 at 5800 rpm
Trial 2: Max Torque=329 at 4900 rpm, Max HP=356 at 6400 rpm
Graph
Chart
There is still a problem though since it is not idling well. The lowest idle was 1500 rpm and it should be about 900. Norm thinks that most likely it is the carb. I might have to send it out to get checked.