I think that you may have sanded the rotor contacts in the cap. The distributor in your picture has a pickup coil and exciter vanes, not the old-fashion type of distributor points.
Your '83 2.8 motor looks like it has been converted from the original setup, which unfortunately makes chasing replacement parts a lot more difficult for you.
If you can get a part number or a manufacturer name from the pickup that's in your distributor, you may have a better chance of tracking down a unit which will directly replace it. This is a case where an experienced parts person behind the counter at a parts store can be a life saver; or, also having the failed part in hand can make an internet search easier.
It will take some work, but I honestly think that you can find a replacement pickup for a lot less money than the full kit price.