I tested the MSD ignition by unhooking the coil wire from distributor cap and placing 1/2" from ground. Then unhooked magnetic pickup leads to distributor. With engine cranking I jumped the MSD magnetic pickup lead wires (green & violet) and got a spark from coil wire to ground. So that test passed.

It would seem to me that when the distributor is isolated from the equation I get spark and when the distributor is part of the equation I do not get spark. So I think we are getting close.