I am reading this thread for the first time. So here are my thoughts as I read each post.
First, while the renix will start with out the CTS connected (I know as I have done it), I also know that if the IAT (Intake Air Temperature, or also called an MAT) sensor is posting bad data to the ECU it can cause a no start problem by feeding gas too lean or too rich, and I therefore suspect that a bad CTS could do the same thing. I had a no start when cold issue that drove me nuts for weeks that turned out to be a biased IAT sensor telling the engine ECU it was hot when it was in fact cold. Started fine once it was hot.
You might try disconnecting the IAT (also called a MAT) and CTS to see if the ECU start up table data will start the engine with no live temperature data. Or do the smart thing and test those two sensors while disconnected from the harness to see if they have the right resistance readings.
Post # 16, fuel filter new, ? was it installed backwards, or did the inside of the fuel filter hose colapse?
Post #20. Yes, if the engine was at the wrong stroke of TDC on cyl #1 it would try to spark at the exhaust stroke instead of sparking at the intake stroke. It is also also easy to install the dizzy off by one gear which messes with the acceleration and power (timing) but does not cause a no start issue. But neither would casue no spark.
Sounds like your problem is with the HV coil or the ignition control module that sits under the High Voltage coil. Try swaping the HV coil from your good XJ first. If that does not work then try swapping the HV coil and the ICM (Ignition control Modual) from the good XJ (or try both first, then try them one at a time if both solve the problem to see which one is bad, or if both are fried). If that works you know which part(s) are bad. If that does not work then you may have a wiring problem between the ECU and the ICM, which we can help with, but try the HV coil and ICM from your good jeep first. Also, the HV coil input from the ICM is a pair of brass clips that can get old dirty and loose, check them for good contact before you write off the old parts!!!