nitrus: It backfired at 3-4K rpm? I thought it did at a higher rpm like 6-7K. You might have a problem but it can be a number of things. Distributor timing, a hole in the exhaust, a lean mixture of petrol/air escaping left in the combustion chamber post ignition. An engine which isn't tuned to handle aftermarket air-filter or extractors.
Just drive it and see if it happens again but at 3-4K rpm, sounds like a problem there unless you do this often. I mean cars are designed to overtake as well so that kinda RPM range should be ok. You mentioned a burnt exhaust tip so its definitely unburnt fuel. Get your mechanic to check ignition timing and even a small leak in your exhaust though this might be harder to spot especially if its a leaking exhaust gasket.
Most cars over a certain age have some water in the petrol tank, this can't be helped. Question is how much water have you got in your tank.
Lol, as for me? I did automotive engineering at FIT before it closed. Graduated, did a few more courses on EFI but couldn't see a future in Malaysia so went off to start my own internet business. Still do most of the repairs on my own car and diagnose the big problems but let the mechanic's handle it for the big stuff. Easier. Love classic cars and old Japanese cars. Still collect books on automotive repair eventhough am out of the business. :)