1996 XJ Will Not Start

Hi all. I bought a '96 Cherokee nearly four months ago. Has 4.0 L, 251,596 miles, AW4, NP231. Ran when bought, but after about a month of sitting while work was being done to it it stopped running.

First there was no spark. The jeep would crank with no problem but just would not start. We checked for power to the CPS and found none so decided to install a new PCM. Once complete, we had spark.

Engine now cranks and will start for and run for about 1 second and then die. Here's a list of things that have been done since that point...

1. New battery and terminals
2. Grounds refreshed
2. New fuel filter, air filter
3. Fuel injectors cleaned and serviced; are all within spec; reinstalled
4. New fuel pump
5. New cap, rotor, plugs, and wires
6. New crankshaft position sensor
7. Fuel Pressure is about 45 to 50 psi
8. Tested IAC, TPS, MAP sensor; all OK
9. Does not seem to be the neutral safety switch
10. Runs on starter fluid
11. Power is good to the injectors
12. Compression is 150 psi at all cylinders

Here is a video of it attempting to start:
https://www.youtube.com/watch?v=-4HNISBTgsg

Any help is appreciated and welcome as I am baffled. Thanks!

Check the distributor, I had the pickup assembly come loose below the rotor, my local shop repositioned & glued it back in place.

X2 on Mike's solution. I've had two distributor sensor
failures on my 96. The sensor magnets tend to come
unglued from the sensor base.

If it runs on starter fluid, it's a fuel delivery problem, not a problem with spark!

If it shuts off (quits) as soon as it starts and you release the key (from "start" to "run" position), I'd say ignition is bad, causing the fuel pump to shut off when key is moved from start to run. You can run power to the fuel pump to test this theory.