Only runs 40 Degrees advanced

Does the distributor wire into the fuel injection system in any way? It almost sounds like an extreme lean condition. My inclination is that if everything checks out mechanically, as in proper firing order, rotor lining up with #1 at tdc, etc. that something screwy is happening with the electronics. Is it a locked rotor distributor or vacuum/mechanical advance? What kind of ignition coil and control module is it using? Any chance the the ignition box took a spike through the pick up unit from the secondary side of the coil when the distributor crapped out and knocked the cap off?