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After more testing I noticed the lag, or hesitation, occurred at a higher RPM on hard acceleration. I went to True Street Motorsports in McKinney TX to get a few runs on the Dyno to see if I could see the drop in performance. They have a great shop and were very knowledgable, even with my older Vette. I will be taking my business back to them.
There results show a definitive drop in power at 5200 RPM. The technician said he thought the problem could likely be source to something in the ignition system. This supports 96GS#07's thoughts that either the plugs or wires are the source.
So, it looks like a tune-up is in order. Then on to headers, axle back exhaust and a tune.
I have the same problem with my 95, it dies at 5,200 RPMS with 280 RWHP(mustang dyno). 15 years would do that, I'm planning on rebuilding that one too, it has 107,000 miles.