Dumbfounded. 340 will not start.

I verified it with a timing light and I also pulled the #1 plug out and cranked the motor over while watching it. Are you saying that I connect both plugs together that would normally attach to the resistor?

Yes, you need to connect the 2 terminals together that normally attach to the ballast resistor (4 terminals in early design). Since you were getting a spark while cranking, I wonder if somebody connected IGN1 (blue) and IGN2 (brn) together in the cabin. Check around the key switch and bulkhead area, or use a multimeter to see if they are connected (<5 ohm) with the key off.