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oil loss and power surge

Engine

Model: 951, Year:1986, Mileage:110K, Type of use:Both Street & Track
Hello I just rebuilt a 1986 turbo engine after a blow up last fall. I ran out of oil after driving 600 miles with no burn or leak noticable. I assumed the turbo was the culprit as I did have a slight surge, or stagger at 3000 rpm after running for an hour or so. I got gas, thinking it was near the end of the tank and possibly had some junk in the tank. The surge did not return until right before I ran out of oil and the bearings burnt. After rebuilding there was a coolant leak, turned out to be the water pump, the car ran well while testing, noticed the temp gauge was running hot when idling, I took it back to the shop and when driving back I got a really bad power surge at 3000 rpm's again. This time it was much worse, like the car was going to die. I had the turbo tested and it checked out fine before rebuilding. My mechanic thinks the knock sensor might have been going a bit wacky because it was running hot. New water pump is going on this weekend, does the surge or stagger sound like the computer or knock sensor trying to compensate? Or am I chasing something else?

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