On the M50 engine, the ignition wiring leads to thinner wires located inside a long plastic box sitting above the fuel rail. Inside this is where the chafing or breakage occurs. Not sure if the wiring is the same for your M52 engine, I think it would be the same. You didn't answer whether you checked for voltage at the plug harness.
Unburned fuel could mean a few things. Depending on your mileage, your fuel pressure regulator could be toast. Is the car losing power or stalling? Any smoke coming out of the rear pipes? If so, I wouldn't drive the car like that, or you'll damage the O2 sensors and/or the catalytic converter.