Tim,
Check the wires inside the distributor. Unfasten one end and check for
continuity while tugging on the wire and flexing it. Also inspect the
insulation carefully, for any place that could rub and ground the conductor.
Your description sounds rather similar to a problem I had many years ago, on
a non-LBC where the wires to the electronic ignition conversion had been led
through the same hole as the vacuum advance. The advance rod had rubbed
through the insulation, and would ground one wire only when the advance was
in a particular location.
-- Randall
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