Good spark rotor pointing to #1 when #1 piston is at TDC; have fuel at fuel rail; hear fuel pump running; put my hand over spark plug hole and I can feel compression. I even tried starting fluid while cranking, but not a pop.

I was an ASE Master Tech about 10 years ago, but this one has me stumped

If the CEL comes on for 2 seconds and then goes out, when the ignition switch is turned to ON (Position II), then the problem is distributor related. Replacing the Ignition Control Module (ICM) usually solves the problem. If the problem persists, install the new ICM in a genuine Honda distributor housing.

Yes CEL comes on and goes out main power/pump relay is OK cap rotor and plugs were replaced the center coil tower in the cap was completely worn off and plugs were worn to twice there spec gap so these were replaced someone else had the same recommendation of ig module or distributor assembly. The thing is I Have a nice hot spark. How would replacing the Ignition Modual help when the spark is good. Am I missing something

What you're missing is that you may have spark but the ICM is not firing when the ECM wants it to. This happens when the microchip inside the ICM fails. That's why starter fluid does not work. If the problem persists, replacing the distributor housing, along with the new ICM, should solve the problem. Internal distributor sensors (CKP, TDC, and CYL) are prone to failure and are unserviceable. Honda distributors tend to last 50,000 to 100,000 miles. All of this assumes the engine's compression is normal.