Brian;

George has given good info, Shannon has given good generic info, but unfortunately NOT APPLICABLE to your vehicle. Shannon's info is essentially to "hot wire" the car, and this is NOT POSSIBLE due to the armored cable which completely secures the supply side of IGN coil.

Here are my ultra-simple, Stevie Wonder approved instructions for getting started determining what the issue is with your IGN sys:

Checking for High Voltage generation:

1. Disconnect wire from coil (Neg) to points, disconnect high tension wire which normally connects to input (center) terminal of dist cap, and lay this with a spark gap, on valve cover.

2. Turn IGN ON. Alternately charge (by grounding the negative coil terninal) the coil primary (which is what closed points do normally), then discharging (by opening connection to ground, which is THE OTHER thing points normally do!), which SHOULD result in high voltage spark from across the spark gap made in 1.

If you get spark, shut OFF IGN and check continuity of points at dist to ground...they may not be opening AND closing...BOTH conditions are required! See George's advice...also the insulator behind the points spring can bocome dislodged, or break down electrically causing points connection to be permanently connected to ground with your symptoms...

See also: http://sw-em.com/Volvo%20Ignition%20from%20Scratch.htm#Vintage%20Volvo%20Ignition%20system%20and%20the%20Armored%20Cable

Good Hunting!