Guys with Duraspark conversion... You may recall that Erik (Mr. 4x4) and I have scratched our heads regarding teh wiring harness sold by NPD. Here is some good info:
THE IGNITION RETARD IS *NOT* a fallacy. It is now a confirmed FACT! After some experimentation and head-scratching, I was able to get the ignition retard to work. In the process, I discovered some information that the community might find helpful. It actually was a wiring problem, but one others may likely encounter as well.
I was using the Painless 30812 wiring harness as-delivered, and connected it according to the wiring diagram in their manual. I NOW BELIEVE THE PAINLESS 30812 WIRING DIAGRAM IS INCORRECT. It will allow the engine to run, however it defeats the ignition retard feature.
The 80312 harness has white and brown shorted together in the harness, and both are connected to the I terminal on the solenoid. At first thought, this makes sense. While cranking, the I terminal becomes energized and provides full battery voltage to both the coil via the brown (ballast resistor bypass) wire, and to cranking indicator input of the ignition module via the white wire. All well and good, except that when NOT cranking, the brown wire still has voltage on it because connects to the positive coil terminal. Because white is shorted to brown in the harness, this same positive coil voltage therefore appears at the white ignition module input. On most cars, including mine, this voltage will be less than 12V due to drop across the ballast resistor. Regardless, this voltage is high enough to cause the module to believe the engine is cranking all the time. Using their wiring diagram, touching the white wire on and off of a 12V source has no effect because you are then just bouncing the module input between two voltages that are both above the threshold used to activate the retard feature.
In other words, if you wire the Painless 30812 harness the way they tell you to, your ignition module will be in retard mode 100% of the time and you will not enjoy the start retard feature. I have just notified them about this design error; perhaps they will make revisions. In any case, the harness still has value if you apply the following solution:
1) Snip the brown wire thereby disconnecting it from the white. Tape off the ignition module side of your cut; it is no longer needed. Then connect the other, ignition coil, side to the I terminal of the solenoid, thereby re-enabling it to function properly as a resistor bypass during cranking. (Note: some cars, including mine, already have an I-terminal connection with a resistor bypass wire in the factory wiring. In such case, the brown Painless wire is not needed at all, but it must still be cut and disconnected from white -- snip it and tape off both sides of the cut.)
2) Connect the Painless white wire NOT to the I terminal as they suggest, but rather to the S terminal. The S terminal only has voltage while actually cranking. As explained above, the I terminal will have voltage all the time while running, if a resistor bypass wire exists (and it should).
Once I made these mods, the system began working like a dream. With the engine running, I was able to see the timing change in real time by energizing and de-energizing the white wire. On my 1U2Z-AA blue-grommet module I measured the retard to be a consistent RPM-independent, 5 degrees. I'd say that's just about ideal. Now I will be able to run more initial advance and enjoy the improved performance, while still actually being able to restart the engine when hot.
Source:
http://www.fordmuscleforums.com/all-ford-techboard/512558-duraspark-ii-ignition-retard-fallacy-fiction-2.html