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I had the same problem which first surfaced in January on my 740 wagon.
I found the problem to be a faulty ignition wire...the one from the coil
to the distributor it's on the bottom of the distro and gets wet
when driving..water seeps into the boot and causes arcing to occur near the
point where the wire is crimped to the brass centre pin.
Replace that wire but use silicon grease to seal it both inside and where the wire enters the boot.
I changed the distributor cap as well.
Make sure all the other plug wires are seated and if they are old change em too.
Car's been running fine since then...Dans
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