lets keep the same stuff on there cuz it is functioning OK (bottom line is spark at the plugs & it is doing that). Tho we gotta figure out why it ain't sparking when it is turned over with the key cuz the brown wire (crank) circuit is getting powered when she turns the key to crank (cuz the dragging is makeing it spark) (with the starter disabled) but it will not spark while cranking & the only difference that I can see so far is that the dist is in effect doing the "dragging" & the zigzag is plugged back in & it ain't doing its job for some reason. So with everything plugged back in & her cranking it there is no spark at the plug(s)? it keeps point to the dist & if that 2 magnet dist has 2 "regular" zigzag connectors we may have to install that dist & use whichever pickup gives us the best phaseing. FIRST lets do this: repeat your last test with (2) changes: plug the starter relay yellow wire back in & have her crank it while you drag the (unhooked) pickup nub (same as before) across the intake & see if the coil wire and any plug wire is sparking. EDIT see if the coil wire sparks then plug it in the dist & see if the plug wires spark.