Took the buggy out today after some more adjusting. Two things came up.....Speed topped out at 65mph with the pedal to the floor. Second, swing axles aren't touching the stops even with no one in the buggy. What kind of speed should I expect out of a 1600 type 3 with a 34 PICT 3 ?, and how do you put more tension on the torsion bars?

What size rear tires are you running?
This link should tell you what you need to know, to adjust your rear torsion bars.
http://www.meyersmanx.com/garage/garage_suspend.htm

It shouldn't hit the bottom stops unless it was lifted off the ground.

I'm running 225/75R15 on the rear. When I put the kids in the back it bottoms out. I put heavy duty shocks on thinking that would fix the issue.....wrong! Is there something else I should try?

65mph sounds about right....with a stock motor. Buggies are not very aerodynamic and with an older swing axle trans you are probably running a 4.37:1 ring and pinion.
As far as the bottoming out is concerned, HD shocks won't fix the problem, you need to re-index the rear torsion bars to increase the ride height. This link should give you an idea on how to raise the rear of your buggy. http://www.meyersmanx.com/garage/garage_suspend.htm

I had a  big flat windsheild on my buggy when I first got it. It had a tired old 1500 in it and I could barely hit 55mph, I took the windshield off and almost went 70mph. nothing like pushing a 2'x4' sheet of glass through the air to act like an air brake....

brad

Kinda hard to pick them bugs outta your teeth tho LOL

They get even harder to pull out at speeds over 100mph.....

brad

My buggy with a stock 1600, 019 distributor and good headers (forget those dune buggy duals) with a 73 trans (3.8 something gears?) runs over 70 with pedal left. Tires are 275 R 15 60's.

With a windshield!

it could be a timing issue. gonna look at that this weekend.

I can tell you that I recall getting the Lil' Bugger up to 75 mph, slant windshield, small tires on the front, large tires on the rear, all new street thread, regular gas, on Rt 66, going downhill, Ozark Mountains, Missouri, good tailwind, about 2 gallons of gas left, 82 degrees, 30# tire pressure, recently tuned up, new plugs, good alignment, just me and Momma.

If your front tires are a different diameter than stock, the speedo won't read correctly. My buggy does 0-60 in under 4 seconds on my speedo, but my tires are only 21.5" tall. I can bury the needle in under 6 seconds

I'd love to go cruisin' in the mountains with mine some day. The Ozarks are a beautiful place.

brad