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I had the very same problem with my MSD system. At first it was intermittent, then it failed totally. It turned out to be the magnetic pickup winding in the distributor. Here is how I found out.
Magnetic Pickup
in the Distributor
The magnetic pickup in MSD Distributors can also be checked with an Ohm meter to make sure it is within operating specifications. Once again, connect the Ohm meter's leads to the two terminals of the pickup. The resistance should be within 400 - 1,300 ohms. If the resistance is out of this specification, inspect the condition of the wires leading to the pickup for abrasion, shorting or opens. If the wiring is okay, the pickup is at fault.
You can order a new pickup at your local speed shop and install it yourself.
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