Well this is screwed up. I did everything that you suggested, replaced wires, plugs, checked it all...nothing. Replaced the cap + rotor...nothing.

Picked up a used distributor from the junkyard today, took the sensor off of it, replaced the one in mine and reassembled it. The arcing is gone. So I either did something to the rotor/cap accidentally that made it work or the sensor was screwy...

Chevy won't start but the arcing is gone, and I made sure the ignition coil is still good. Have a few more parts I have to replace with parts I know were working prior to this issue.

Maybe the arcing isn't the issue at all...just something that's been there a while.. Q_Q

 

Tried plunking in a new battery to see if that made a difference. Only difference it made was causing the backfire to be worse...blew my muffler in half.