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timing problem

Engine

Model: 944 turbo, Year:1986, Mileage:105000, Type of use:Both Street & Track
I have a 1986 turbo. The engine blew up shortly after I purchased the car, it ran out of oil with no warning.I now have a 1987 block and the whole lower portion of the engine is rebuilt. I added a Lindsey Racing light weight flywheel, and racing clutch, the car will be used for track. THe timing of the car is a mess now with all mechanical timing checked and triple checked. Timing is jumping all over when idle and gets better as the revs come up. My mechanic thinks the chip is the problem? The engine has been modified and is chipped I believe. Prior to the old engine blowing up, timing was never a problem. I don't have the stock chip, but am at a total loss for what is causing the timing problems.

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