Whatever the problem is/was... it finally failed. I ended up buying another jeep for parts and to rebuild the engine then swap it in, but I still need this one to work for now as its my only vehicle. Once I got the parts jeep (it ran perfectly so I know that all electrical was good) I swapped over a bunch of sensors ( IAT, IAC, coil. Plug wires, distributor) I set the engine to TDC and set the new dist in, turns out that I messed up somewhere and ended up blowing the muffler to pieces from a backfire (the concussion was massive ) fixed the distributor to rest at 5 o'clock when engine is at TDC and it ran for a few hours, it was really smooth, but had about as much power as if it were a lawnmower engine, it got progressively worse until it stalled a couple times and refuses to start, I replaced the cps and made sure that it's getting spark, I also replaced the fuel sending unit and made sure its getting enough fuel, when it was running I checked it with a timing light and at idle it was about 15 degrees advanced - same as my friend running jeep, its also getting good compression about 150 on all cylinders (except #2 which gets 175) so its not spark, fuel or compression, the dist is set to what the manual says. I am stumped it SHOULD run but refuses to, if there is something else that could prevent it from running please let me know
Thanks for all the help, even if I can't get this engine running- I have deffinetly learned a lot about this system