1986 Grand Wagoneer won't start

Knock a wire off the solenoid?

I'm leaning toward something that stops the engine from even turning over.

Since you replaced the cap it's probably the Camshaft Position Sensor in the distributor. (I'm assuming your engine has one) I'm not that familiar with the 86 model year.

No, solonoid is all hooked up, actually it's a relay on fender wall. Entire distributor was replaced, so I assume it is not the camshaft position sensor. Could it be that the rebuilt starter took this moment to quit?

Starter relay not clicking could be the solinioid gave up or a blown fuse in the ignition circuit.

I don't think your vehicle is new enough that the computer will prevent engine starting with missing sensors. It should at least turn over.

I'd test the solinoid and starter circuit. Not exactly your application, but it's electrically the same.

You did put it back in 'Park' right?

entirely possible the starter did crap out just at that point, see if you can do the following:

Turn over engine by hand from teh front pulley. (maybe remove spark plugs to release compression)

Jump solenoid (after the above step confirms that the engine will turn over) and see if that helps. (Careful, don't let ti start in gear!)