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why my cherokee runs?

Does it start with it unplugged or you just unplug it while it's running? I believe the computer only needs the distrubutor (cam position) to figure out when to fire the first cylinder. After that it can determine which cylinder to fire based on what cylinder previously fired. Also, ignition is most likely run from the crank position so no problems there when you unplug the distributor.
 
Once the ECU knows the cylinders coming up, it doesn't need the SYNC sensor input (that's what you're unplugging) anymore. It can actually start without the connector connected - it will just take a little longer, and sound like the timing is off (the ECU is "guessing" when #1 comes up, as mentioned.)

I've cut the tab off of the base of the distributor (it wanted indexing) and, once done and as an experiment, I loosened the clamp and turn the dizzy 180* each way while the engine was running. No problem there, either.

The distrubutor in RENIX (1987-1990 AMC242, 1984-1990 AMC150) is only there to route spark. It doesn't have anything to do with timing directly - even though it can be installed "one tooth off" and cause trouble that way. All other ignition timing is controlled by the ECU, mainly on feeds from the crankshaft position/speed sensor.

5-90
 
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