The sensor is located on the lower left side of the bell housing of the transmission. The engine speed sensor is the one of the top and the timing reference sensor is the one on the bottom.
I diagnosed it by starting from the engine and working my way back, plug were good, wires, coil, coil wires, ecu. Then I remembered that when I changed my clutch I saw a ****ed up sensor. I check out what the sensor did and put two and two together and got a new one. Plugged it in and it fired right up.
And no there was no spark when the sensor was broken.
85 325 - Turbo M52B28.