MegaSquirt requires a pulse from
the ignition to syncronize the fuel injection. This sync can be obtained
by using the - coil output of the after market electronic ignition.
You can test your input connection by monitoring IRQ-1
at R13. First set up MS to monitor IRQ with the center front panel LED.
Disconnect the HV lead at the distributor and tape it to the engine
block at a 1/8 inch gap. Put on the hand brake and the car in neutral.
Now turn the engine such that the crank pulley passes from 20º
BTDC to TDC. The IRQ LED should go from On to OFF at ~10º BTDC
for most cars with distributor (but it may be from 5º to 15º,
usually this is called the static timing)
The MegaSquirt will in turn then drive a single
external coil.