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How old are your wires? Spark from the end of the wire would seem to be good (if i read your description correctly), sparks arcing from the wire itself - not good. Try having a helper crank the engine in the dark garage, you watch at the engine/spark plug wires and see if there is arcing from the wires, will be a light show if your wires are bad. Not to say this is your non-start issue, but should help you determine if wires are a problem.
I just replaced the wires on my '85 3.2 and it wasn't too complicated; routing properly was the only challenge. For your '79 it may require removal of an item or two to make it easier; on my 3.2 I had swing the A/C compressor out of the way, made life a lot easier.
If you decide to replace the wires, my recommendation is Beru.
H
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1985 Carrera
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