BOO

I had the same problem here is my solution.

 

There is a little black box on the coolant over flow bottle. It has a lid. There are a few fusable links in there. The one closest to the fire wall controls the ignition. Take it out and see if it is corroded. If it is replace it. I had the same problem and as it turned out it was restricting the amount of voltage going to the distributor cutting the spark out.

 

Check that, and pull back the fabric to see if your wires are corroded under neath it.

 

Let me know, I battled this problem for about 6 months and this was the problem.

Hey Boo---Great goin'!! Thanks for letting us know the outcome. Since the O2 sensor passed the disconnect test, it's worth reconnecting up for the savings in gas. Good luck.