Won't Fire - Need Help!

Hmm... Here's what I checked:
1. Firing order was correct - 1-8-4-3-6-5-7-2
2. No wires crossed
3. Using TDC Tool, verified TDC is accurate on dampener
4. Using remote starter, covered #1 cylinder plug hole and verified distributor is firing on compression stroke (Distributor is not 180 off). No compression in #1 cylinder when pointing to #6.

One thing I neglected to mention is that the MSD Distributor (8534) had a fair amount of surface rust on pick-up and in general from sitting so long on the previous motor... Took completely apart and clean with a wire brush, fine sandpaper, and steel wool. Reassembled and reset air gap to .008".

Still seems like an electrical problem, but not sure what else to check...

Any other ideas?