OK So cruising at 25-40 under light throttle. The motor will start to hiccup. It has not completely stalled on me. From what I can tell it's in the ignition. I'll see it on the tach a split second before I feel it in the drivetrain.
I just swapped out the Ignition Module with a new Standard one... Didn't help. Pulse coil and Reluctor? I noticed that the Pulse coil will move(rotate) about 15 degrees when I changed the ICM. Is it supposed to do that?

EVAP System is venting like it should. I found some vacuum leaks and sealed them up.... Almost seemed like that made it worse... Or that could be my imagination...

1989 Formula 350. Almost everything except the distributor is new. New Bosch Fuel pump, new South Bay Injectors. MSD direct replacement coil, cap rotor plugs wires etc.....

 

If the pole piece and/or pickup coil are moving their mounting needs to be checked. For a non-advance distributor (stock TPI) the coil is mounted to a plate held in place by the hub at the distributor base and a locating pin. The distributor shaft needs to be removed to inspect this.

Is it the reluctor (moving pole piece) that moves or the pickup coil/pole piece? The reluctor should not move relative to the distributor shaft. The distributor shaft may rotate if the drive gear is worn. If there is radial play in the distributor the distributor needs to be re-bushed. If there is axial play the distributor need to be shimmed.

If the reluctor is moving on the distributor shaft it needs to be replaced.

 

The piece that connects to the two wires that go to the ICM. It will rotate about 15 degrees around the distributor shaft.
There is no up and down movement and the main shaft has no wobble that I can feel

 

That sounds like you are describing the pickup coil. It should be retained by screws to the mounting plate/fixed pole piece, and the plate should be pinned to the distributor body to prevent this rotation.

It should look a little like this:

 

I'm going pull it out prob next weekend. The piece that moves is this one...

 

That is the pickup coil itself. It should be secured by a locating pin, but movement there is not as big a concern as movement of the pole pieces. The coil itself is not actually timed to anything. Instead, its proximity to the magnetic (fixed) pole piece and reluctor causes an electrical impulse to be generated in the coil whenever the pole pieces align. While moving is not a great thing, but may not be the sole problem.