HELP 86 XJ WONT START

:huh:
So here is the story. 86 XJ with a 2.8l V-6. 4x4 A/T. Just bought the thing. Cheap. Died on the P/O while she was driving.
The motor cranks and cranks but wont start. I have checked the plugs, good there. New fuel pump(it was bad) When I went to check timing the timing light would randomly flash here and there, like the plug didnt always fire. So this leads me to think something in the dist or coil? Any one have some suggestions here? Not even sure where to start to check the coil/dist. I dont see anything obvious. The motor has approx 70K on it so I dont think the timing chain broke or skipped? The rig wouldnt even come close to starting with starter fluid sprayed in the carb.

just replace the cap, rotor, and coil along with new plug wires and you get new and needed parts, plus get it running.

that should be the problem. it's most likely a bad coil

I bought the cap and rotor, cleaned the plugs and gap. Picked up a Chiltons man to tell me how to test coil and dist. Wait and see if that works or not.

So I put the new cap and rotor on. No luck. Each plug has spark going to it. This makes me think the ignition system is ok. For the rig to just die while driving makes me think its NOT the compression. Something in the timing? Maybe the chain skipped a tooth? Any way to check this without removing the timing chain cover? If thats bad its not a ton of money but what a pain in the ass to get to. I really could use some help or thoughts here! I will replace the fuel filter on the carb tomorow. I did pull the fuel filter and it didnt look bad. When I push on the gas pedal I can see the carb shoot gas into it.
Gas, check
Spark, check
eng go bang? Negative:gonnablow :smsoap:

How many volts shouls my coil have going to it? My coil had 2 plugs that the chiltons did not describe. One going into the coil and the second going to the Dist?

So the timing chain was shot. The little dots no longer lined up. If I line the dots on the cam gear and crank gear does that mean my #1 piston is at TDC? The 2 dots were off by 3 or 4 teeth and I want to make sure when I put it back together with the new parts I dont put it in ass backwards.

If I am right the rotor should be in the ball park of the #1 plug wire on the cap right?