Backfire/misfire problem

is the distributor set in right?

Backfiring out the intake is either a valve stuck open or a lean mixture or spark plug wire(s) connected to the wrong cylinder(s). Check compression on all cylinders and then look for vacuum hoses loose, cracked, misconnected. Check the line for the vapor recirculation system – it is easy to knock loose and not see it when you connect the air pump plumbing. If the vacuum line for the EGR valve and the air pump are cross connected, some very strange things can happen. Check the mass air flow electrical connection and see that it is tight, the same goes for the fuel injection wiring harness connectors up on top of the manifold near the firewall.

Sticking valves: If a intake valve is bent, has a bad spring or is misadjusted, the engine will sometimes backfire through the intake. Use a vacuum gauge connected to any convenient spot on the intake manifold. Run the engine at 1000 RPM & look for 18-21 inches of vacuum with a steady needle. A problem intake valve will make the vacuum gauge needle sweep 5-10 inches every time that valve opens or closes.

Lean fuel mixture breaks out into several sub categories:
A.). Vacuum leaks
B.) Air entering the intake without passing through the MAF.
C.) Failure of the MAF, BAP/MAP (Baro or Manifold Air Pressure, same sensor, different name), ACT (air charge temp), or ECT (engine coolant temp). These should set a code in the computer.
D.) Leaking exhaust gases from EGR valve at WOT.
E.) Poor fuel delivery due to bad fuel pump, clogged filter or bad fuel pump wiring. Look for low pressure or fluctuating pressure. Standard injector pressure is 39 PSI at idle, with the vacuum line disconnected from the regulator and capped.
F.) Clogged fuel injectors.- see the cylinder balance test below
H.) Fuel injector wiring problems causing injector not to deliver rated flow.
I.) Computer problems: (computer problems are not common like sensor problems)
J.). ROM has bad data in fuel or timing table. This should also set a code in the computer.
K.) Failure of one or more of the computer's driver transistors for the fuel injectors. No code set on this one. Use a noid test light to test the injector wiring & injector drivers,
L.) MAF calibration off or mismatched to injectors.

Cylinder balance test:
Warm the car's engine up to normal operating temperature. Use a jumper wire or paper clip to put the computer into test mode. Start the engine and let it go through the normal diagnostic tests, then quickly press the throttle to the floor. The engine RPM should exceed 2500 RPM's for a brief second. The engine RPM's will increase to about 1450-1600 RPM and hold steady. The engine will shut off power to each injector, one at a time. When it has sequenced through all 8 injectors, it will flash 9 for everything OK, or the number of the failing cylinder such as 2 for cylinder #2. Quickly pressing the throttle again up to 2500 RPM’s will cause the test to re-run with smaller qualifying figures. Do it a third time, and if the same cylinder shows up, the cylinder is weak and isn’t putting out power like it should. See the Chilton’s Shop manual for the complete test procedure