Hello All,
One new source of intermittent electrical failures to consider.
When I was starting out in the electronics industry an Engineer I was working with told me that over 90% of electrical problems were mechanical in nature. Over the years I have confirmed this observation to be true.
The most common problem has been in connections between components. This includes the connections between wires and the connectors crimped or soldered onto them.
If you find that there is an intermittent connection give the connectors a pull to see if they are attached. Many connectors have a plastic shroud that will help the connector to stay attached while there is no electrical conductivity. Poor crimps can occur from using an incorrectly sized crimp for the wire, the improper tool for the crimp or from operator error while making the crimp. Broken wires at the connector will also show up with the pull test.
Corrosion at the connectors also cause headaches. We talk about having good grounds at body connecting points but there is also corrosion to worry about at the bullet connectors and where a bare wire goes into a screw connection. Often times an electrical problem can be fixed just by undoing a connection and reconnecting, because this will break up the corrosion. On my TR3 as I was installing the wiring I used a coper based electrical dielectric grease in all connections to reduce corrosion.
A suggestion for your current problem, check the earth lead inside the distributor. This is a wire that is under the points plate that connects the points plate to the body of the distributor. This wire is flexing when the advance mechanism changes and could over time fail.
Good luck and I hope your problem is solved soon.