Low Mileage original 318 suddenly dead on 5 and 7 HELP!

Easiest thing to do first is a compression check. Does seem odd though. You say the plugs are wet. We are talking gas wet right? If you remove 5 or 7 plug and wire and clamp the plug to ground you see spark correct? If you do then it has to be compression. Only thing. Even a compressed lifter would give you some valve movement I would think. Plus if the valve was not opening where is the gas coming from? Are you getting any steam in the exhaust? I am thinking maybe blown head gasket between 5 and 7. Or worse. How about oil in the coolant or coolant in the oil?