Need help with engine not or barely running with spout plugged in on 88 5.0

Possible PIP sensor failure.

Spark with the SPOUT out, but not with the SPOUT in suggests a PIP problem. The PIP signal level needs to be above 6.5 volts to trigger the computer, but only needs to be 5.75 volts to trigger the TFI module. Hence with a weak PIP signal, you could get spark but no injector pulse.

See http://www.wellsmfgcorp.com/pdf/counterp_v8_i2_2004.pdf and http://www.wellsmfgcorp.com/pdf/counterp_v8_i3_2004.pdf for verification of this little detail from Wells, a manufacturer of TFI modules and ignition system products.

The PIP is a Hall Effect magnetic sensor that triggers the TFI and injectors. There is a shutter wheel alternately covers and uncovers a fixed magnet as it rotates. The change in the magnetic field triggers the sensor. A failing PIP sensor will often set code 14 in the computer. They are often heat sensitive, increasing the failure rate as the temperature increases.

The PIP sensor is mounted in the bottom of the distributor under the shutter wheel. In stock Ford distributors, you have to press the gear off the distributor shaft to get access to it to replace it. Then you drive out the roll pin that secures the gear to the shaft. When you go to press the gear back on it has to lined up perfectly with the hole in the gear and shaft. I have been told that the hole for the pin is offset slightly from center and may require some extra examination to get it lined up correctly.

Most guys just end up replacing the distributor with a reman unit for about $75 exchange