Ok, thought I'd post an update as I found the source of the problem.
First given the fact that when the engine would cut out around 3500 rpm, it sounded just like a rev limiter and given that I had also had a code 19, I made the mistake of going out and buying a brand new MSD distributor and coil, thinking the issue had to lie in the ignition. WRONG!!! The problem continued exactly as it had before.
I did some googling on the subject and found this article:
http://www.fordmuscle.com/archives/2006/10/DIYEFI/index.php
Turns out that that the purple wire on the RJM harness that I had put to the I terminal on the solenoid had a constant 12v source that prevented the advance of the timing, as it acted as if the engine was cranking the whole time. The other wire on the I terminal from the stock harness (believe it was black) had a constant 12v key switched power source. I don't believe it is supposed to. I thought it went to the stock distributor and was only supposed to be active during start. (If anyone has any incite as to why this wire had a hot 12v I would appreciate it.
I went ahead and switched out the stock solenoid and used a 92 mustang solenoid which has a diode that is supposed to be better for fuel injection. (not sure why on that either.) I just taped off the 12v hot wire that was on the I terminal and ran the purple wire to it as it was supposed to be.
It now runs perfectly. Plenty of power through 5k with the stock explorer cam. WHOO HOOO!!! Hope this helps someone in the future who runs into the same problem.
On a side note I have yet to pull any codes since I got it fixed...thought I would drive it for a while first. So I am not sure if the other code will still be present.
Thanks for all who helped!!!
-Patrick