Thanks for including the serial number. I was able to look up your engine and be aware of exactly what's on it... That helped immensely...
1998, Bravo 5.0L with Thunderbolt V and knock sensor. Engine model number 4M12025LS...
Your engine also has a knock control module. In order to properly test the basic ignition components unplug the knock control module, disconnect the Grey tacho wire and run through the diagnostic chart. Follow each step in order, and don't try to skip or guess anything. A test light is fine.
You already said you have no power on the wht/red wire with the key on. That could be no power coming from the module, or the sensor is faulty and grounding it, which would also explain the module getting hot. Disconnect the wht/red from the sensor and recheck. If you now have 12 volts on the module end of the wht/red wire, replace the sensor... If not, the module...
The only other thing I would check it that the distributor body is properly grounded. If there isn't one already there, I would put a black wire from the dissy body directly to a good known ground point on the engine block....
Chris.......
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