Beyond Frustrated - Wont start/stay running

AJ,

Thank you for that information. I dont have time to run those tests this week. I may free up sometime on Sunday to look into those tests.

Rusty,

This engine was rebuild about 20,000-25,000 miles ago. At which point the rocker assembly was installed. The oil has been changed every other year, or about 6000 miles running on full synthetic. Now I believe the rockers were last adjusted about 10,000-15,000 miles ago. id have to check my little book to find out the exact number.

nm9stheham,

I ran some of the tests you suggested. I had a hellish time trying to get the points to be full open. But it appears I was falling within your .018-.022" range.

For the sake of the ohm tests mentioned below. My multi-meter was reading .6 ohms when I touched the wires together:
With the coil's negative and positive terminals disconnected (but the main coil wire still connected) I was getting a 1.8 ohm reading. Which I guess equals out to be 1.2 ohms. Which is a little below what you said, but no where near 3 ohms

So the original ballast resistor (which I have since changed out) was reading infinity (I guess that is the proper term, full open? not sure but yes I wasnt getting any ohm reading) with only one wire terminal connected. Interesting.
The one ballast resister I have in there now was giving me a 1.6 ohm reading with only one terminal connected. Which I guess equates to 1.0 ohms

Now the last test you suggested I do was to take the coil wire off of the cap and stick it to a valve cover bolt (or any bare metal surface) and crank the motor over looking for a blue spark. Now heres the thing. I was only able to get a complete blue spark when the wire connector was basically touching the bolt. When I had about .25"-.375" distance between the valve cover bolt and wire connector only the arc contact points were blue but the center portion of the are was yellow.

What can we deduce from this?