Assuming everything you're telling us is complete and accurate...
The internals should be fine with 160 psi reading.
Assuming the carb you are using has a vaccuum operated power circuit, it probably gets its vaccuum from the base of the carb, which means if the wrong gasket was used to install it to the manifold, you may not be getting any vaccuum to the power valve, which would make it dump fuel all the time. If the carb checks out, then look for a plugged up catalitic converter or muffler. Had this happen to me, and it causes a loss in power and an increase in fuel consumption because you are trying to give it more gas to compensate for the loss in power. I'm assuming you checked the tranny fluid? it should be bright red and not smell burnt and full when warmed up. Also pull the vac line that goes to the modulator and make sure there is no fluid in the line. That would be a sign that your vaccuum modulator is bad.
