You didn't state, but usually it's assumed...you did plug the distributor vacuum while timing it, right? If you did, you might be looking at a worn dizzy shaft or the spring plate may be binding. I once had a distributor that lost one spring, and it took a long time to figure out why it ran weird only 1/2 the time. Check the play in the distributor, and inspect the shaft and plate for binding...
Budget Imports in Englewood lists an '87 Pup electronic distributor for a 1.9 for $50. 1-888-837-5036
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http://www.car-part.com) This is a really easy upgrade, and worth the money three times over, there are a bunch of threads here on how to install it...
I'd strongly recommend that you attempt to drain and clean your fuel tank. The fuel filters will catch the big stuff, but if you've got lots of rust and crud in your tank, you may find that you'll be changing fuel filters weekly for months until you've got the junk out...It gets really old, I've been there...
Good luck, let us know what you find.