a blinking timing light might not mean the plug is firing, if there are other grounds.
I'd take plug out and check for spark while holding plug on block. Just don't touchee!!
First page, Bob. He stated he had changed the wire and the plug.
First post stated the timing light seemed slow on that wire compared to others....which leaves the distributor cap as a possible culprit is the post is bad, or maybe a hairline crack...but, I would check the compression because if it is substantially low, the cylinder will not fire completely and leave the plug a bit wet which can bleed the voltage across the insulator to the case making for an erratic spark
Given his comments that he saw little difference in pulling any wire, it may be the ignition box as well. I am sure that Neil has asked about the air gap in the distributor, but it is worth verifying that it is correct on all the lobes as well.
I believe in proving things are okay so they can be eliminated from the equation-hence my question regarding the compression