I started with the basics, cap, rotor, then worked my way back. Plugs I could do, have not done in a while. The car can start fine, purr like a kitten, I drive to gas station, it won't restart. No spark with my tester, or intermittent spark. I let it cool for 4-5 hours it starts right up. I am going to focus on the distributor for now. It can't be good to have the inside of you cap oily and expect it to perform well. I am a little unclear about these words in your writeup, maybe it will be clearer when I see it.

you must remove the old varnish with razor blade scaper and ScotchBrite or you break the fiber washers which cannot be purchased. I am not sure what the fiber washer is. Also Autozone does not have the seal, maybe I need to try one of the volvo specialty online shops like Groton.

Thanks again for help.