The points arelikely rusted or closed up. That would be the most likely guess. To prove the coil's ok, disconnect coil wire (don't hold it, put it somewhere you can see the spark), turn the ON, then OFF. There should be a good single spark when the key's turned off.
The points are under the rotor- a nail file or another fine scraping tool would be a good choice to clean the points off. They could be all white and crusty.
As the engine turns, the points must open (1/16 of an inch or so) and fully close. Proper adjustment can be a little tricky but not too hard once you've done it once. Of course you have to either look at it with the cap off and someone cranks the engine, or turn it over with a wrench by hand to see the operation of the points.
If you don't have a book on it, you should get one. Good diagrams of points adjustment in all the manuals.
Since the fuel pump seems to be running the FI points in the bottom of the distributor are working correctly.
Good luck!
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Rob Bareiss, New London CT ::: '87 244DL/M47- 221K, 88 744GLE- 202K, 91 244 181K, 88 244GL 145K