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Are you sure you are timing off of number one TDC? Check that number one is at tdc on the compression stroke and the make sure your rotor is pointing to number one that will give you a starting point.
Two things just poped into my head on this one you said you pull the coil wire and you hear it pop every so often? It should be a steady fire if it is working I would pull a plug wire and see if you have fire there as you said the plugs are wet and should not be verry wet if they are firing. In another post here someone metioned a ground from the manifold to the firewall as being very important for fire. I assume you are using the distributor from the 91 so as long as that was running you should be ok there but as with every thing else any of the parts in the ignition system could be bad. If all else fails see if you can pull codes and see what they say.
I can't get any codes system ok 111 and the coil sparks constantly and the #1 plug sparks every so often but that would be correct cause it would spark every time the rotor came around. Doing good keep suggesting anything helps.
After you check the spark as Maineiac suggested, I have another suggestion. Remove the large hose on the intake that comes from the air filter housing and prop the butterfly there open a ways to let more air in. Use a large screwdriver or something big enough so it can't be sucked into the engine. You could also spray a small amount of starting fluid in there. I have done this a few times on fuel injected engines that just wouldn't start.
You said you used an older long block but what cam did you use? I believe the firing order is set by the cam and that should be your firing order. I know this may sound stupid but is your batery up? I have had computer systems not work correctly if the battery is low on amps the starter drags the battery down enough to make the computer fail I know this is off the wall but I have had it before.
One thing comes to mind and that is did you change the distributor gear? The older motor (68) needs a cast gear and you newer motor (91) needs a steel gear. This could be a source of you troubles in that the distributor is no longer turning? I would suspect the steel gear would run for a while but it will wear out the cast flat tappet cam shaft causing timing issues if it doesn't break first.
Did you hear this motor run before? If not you may have a jumped timing chain.
What flywheel did you use? The 91 motor will take a different harmonic balancer and flywheel than the 68 motor because of the balancing differences, 91=50oz and 68=28oz. So unless you bought the specail dampner (balancer) for the front of the motor your pulleys would not line up and if you did install the dampner from the 91 to the 68 motor the timing marks are now way off! How are you timing the motor? If you do start it with the 91 dampner and flywheel if will shake like hell.
I would not use any starting fluid at this point until you know where you are at and you are sure everthing is correct. I have heard storys where to much starting fluid and an out of time motor don't mix very well, broken crank?
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