I was in almost the same situation described, with my 1986 Camry. It was running fine when we parked it, but a few days later, it refused to start. It cranked just fine, but never seemed to fire. Things I tried:
- changed distributor cap, rotor, and plug wires
- saw nice blue spark on each plug pulled out
- measured primary and secondary coil resistance - all within specs
- changed fuel filter (wasn't clogged), plenty of gas
- tested fuel pump by jumpering Fp and B+ connectors, with ignition on. Sounded ok (I could hear fuel going through lines).
- removed cold start injector; when engine was cranked, it put out a nice spray of gas
- verified timing belt had not slipped a tooth. When I had the engine turned to #1 TDC, I was able to look in an inspection port on the timing belt cover. The port on my car is sealed by a rubber plug (about 1"); I had to use a mirror and flashlight to see the camshaft pulley through the port.
I put in a new coil, and surprise, it started right up. In fact it runs better than it has in years.
Changing the coil is a little tricky. I followed the detailed directions I found at autozone.com, and pulled out the distributor. (You could probably change to coil with the distributor in place if you have a VERY short offset Phillips screwdriver.) Before I removed the distributor, I set the engine to #1 TDC, and the rotor at #1. I noted the rotor position, and used masking tape to mark the distributor timing. With the distributor out, the coil was simple to replace. Putting the distributor back in correctly was the trick. On mine, the gear had one tooth marked on the edge closest to the cap. When I lined that tooth up with a mark on the distributor, and put it back in the engine, it worked out just fine, with the rotor pointing the same as when I removed the distributor. I had a shop verify that the timing was still correct, which I thought was ok, since it was now running just fine.
Jock