I am starting to doubt that you car came with the line to the cat. I found a photo from a 82 Regal on eBay here:
http://cgi.ebay.com/ebaymotors/1982...3?pt=US_Cars_Trucks&hash=item3f24da0fdd#v4-42
The engine photo shows the diverter valve. The hose coming off the top looks like it goes to atmosphere. There appears to be some sort of muffler attached to the end of that hose to keep it quiet. The other line looks like it goes to the driver's side exhaust manifold. There is a pipe going over the valve cover to the passenger side, which is probably an exhaust line to the pass. side manifold. Autozone shows a photo of a two way valve that looks just the one in the photo on eBay. I.e. no line to the cat.
Take a real close look at your car anyway to see if you have the same setup.
By the way, the inspection sheet you posted showed timing at 16 BTDC, which I assumed was the spec. Since your underhood decal shows the spec as 15, I think the 16 number could be actual timing reading recorded by the tech. If so, I would adjust your timing to at least 15. Actually, I would test their variance and go to about 12 or 13. I have read that CA allows up to a 3 deg. variance. If they let it go at 12 then you gained 4 deg. retarded which would help HC. How much? Don't know, if you try it you can let us know.
