Diagnosing Distributor - No Spark Chase

update:
Well, I re-did the ignition system bench test. I must have done something incorrectly last time, but this time I was able to determine that there was something wrong with the distributor. I put a new one in and now I have spark! Thanks 67Dart273 that was really helpful!

Unfortunately its still not starting and it seems to have developed a new problem. when the engine is turning over it periodically makes a scary grinding sound and stops turning over. But when i try again it will turn over like normal? Weird? just one thing after another.