I just checked out my lower distributor cap on my 1995 gt and noticed a crap at the base where it sits on the dizzy. There is also a lot of grayish dust inside of it. Could that be a issue
There usually is a litte grey dust in there, if the distributer is working ok, I wouldn't worry about the grey dust. Generally when that part is cracked, the cap doesn't fit on tightly. I would just go ahead and replace it. The autoparts store refers to it as a "cap adapter," and they are generally around $10.