Bob,
I’m not so sure you need to anal about using distilled water. Then, again, I’ve never used it so really have no idea of it’s benefits
I do, however, tear my system completely down and inspect every inch for deterioration at least once per year. I have learned... this is a must-do.
You could use a small amount of lubrication, such as WD-40. Maybe an ounce per gallon...something like that. Should help with corrosion without contributing to combustion instabilities.
I’ll take a guess that .020 nozzle is adequate for ~21 lbs. The performance of the nozzle will not become apparent until the stock IC becomes heat soaked and the engine is under max stress. The finer the droplet size the better the nozzle will perform under high heat conditions.
Also, keep in mind there comes a time when any single nozzle becomes too large for optimum atomization. I would think the .020 is about ‘maxed’ out in this regard. As you increase your boost you may find better performance with two, smaller nozzles. For comparison, I divide my system flow between 5 nozzles.
What you should do is pull the nozzle out. Rig your system so you can spray into a bucket. Now you can observe the spray pattern, and, more importantly, do a 10 second timed spray, then measure the output. Maybe even rig a pressure gauge to see exactly what that pump is doing. The systems I’ve helped spec push at least 90 lbs, at full system flow. Higher pump pressure helps to get better spray.
Doing both of those items would give you a nice baseline for future reference.
Anyway, this is all just my opinion, and, you know, opinions are like a**holes, um, which I have been called from time to time <G> so just take this for what it’s worth.
Good luck.