Hello
It really sounds like your drawing air into the fuel system. I know exactly what you're saying about the rev-limiter. I had a problem like this and that would be a good way to describe the problem.
I would advise you to check all the fuel line connections. Check for cracked hoses or rusted steel lines. Make sure the fuel filter clamps are secured properly. I would concentrate on the fuel system. Think back, when did this start? Could it be related to any work done recently?
I don't know why the question was timed-out but for some reason it was.
When you wrote back and mentioned that you can smell fuel that is KEY to the whole problem. My theory of drawing air into the fuel system is most likely the issue. You should not be driving this vehicle around like this. The fuel system is under a great amount of pressure and a small pin hole in a fuel line could be spraying fueling around under the hood, VERY DANGEROUS. If you’re not sure how to diagnose a problem like this, you should consult with a trained professional. You originally asked why your engine could not hold high RPM, the answer is that the engine is starving for fuel.
I believe you have a reasonable answer to your question. Without actually working on the vehicle myself, I cannot tell where the leak or fuel loss is. You’re going to have to diagnose the problem yourself or take it to someone who can help.
Dan
Automotive Management
36 Plus Years of Direct Automotive Experience