Our main result is a $3$-query test which works for \emph{exponentially small} success probability $\exp({-k^{\alpha}})$. Our techniques (based on recent simplified decoding algorithms for the same code \cite{IJKW08}) also allow us to considerably simplify the analysis of the 2-query test of \cite{DG08}. We then show how to \emph{derandomize} their test, achieving a code of polynomial rate, independent of $k$, and success probability $1/k^{\alpha}$.
Finally we show the applicability of the new tests to PCPs. Starting with a 2-query PCP over an alphabet $\Sigma$ and with soundness error $1-\delta$, Rao~\cite{Rao08} (building on Raz's ($k$-fold) parallel repetition theorem~\cite{Raz-parallel} and Holenstein's proof~\cite{Hol07}) obtains a new 2-query PCP over the alphabet $\Sigma^k$ with soundness error $\exp(-\delta^2 k)$. Our techniques yield a 2-query PCP with soundness error $\exp(-\delta \sqrt{k})$.
Our PCP construction turns out to be essentially the same as the miss-match proof system of Feige and Kilian~\cite{FK00}, but with simpler analysis and exponentially better soundness error.