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lbs and psi are the same thing lol. psi is pounds per square inch, lbs is the same thing there is no conversion factor lol. besides that, you're running low timing and on a mustang dyno and they read lower.
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 2000 BAB GT, Procharged, 4.10's, gears, exhaust, speedy dyno tune...Still a 2v though 
368 hp
406 lb/ft on 7lbs
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