Mn, could be knocking. Not a bad call. What octane, Nytro? Some of it may be heat related too. The M62 develops alot more heat than the M90 at the same engine rpms. The 62 has to spin faster. Could also be your ignition. I'm beginning to have my doubts about the stock ignition system keeping up under high stress. The MSD coils made a big difference for me.

I thought it could be knocking too, i have a scan tool and the knock sensor isnt going crazy like i thought it would. I have this DIS-4 on my workbench for about 3 months now, i got the coil packs in a while back. WHIle it gave me a subtle upgrade in pedal response it didnt help at 99.6% throttle. I have a computer chip being custom burned that i've been waiting over 2 months for, it is supposed to change my spark curve a few degrees among other things. I really wanted to get that in and evaluate before i installed the DIS-4. Hopefully the chip will be ready this week. If i could figure this thing out i think i could hit high 14'*.
Will, you mention something about heat, i notice something that doesnt show up on any computers. I run like a bat out of hell up to the point where i get hot, then even when the guage says it cools back down to 180*, it still doesnt seem like the power is there like it was before everything started sizzling. I'm wondering if its the IAT sensor telling me to run rich because the air intake is soo hot. A mini AFC 2.0 should help in that respect. I do have a insulation box that i made around the cone filter and also have a heat sleeve for the intake pipe. that seeemed to help some also.

These are the next step to try and resolve the issue. Already paid for just waiting for chip.
DIS-4
computer chip

If i still have issues after that, then this is next in order...

Mini AFC
Cryo system

Anything else you can think of?

OH, i had this car since 97 and have never put anything but high Octane in.