If it's missing and you are seeing all the arcing under the hood then it seems that the plugs aren't firing all the time under load. One test might be to reduce the plug gap to .020" or so, see if that helps. Water under the hood will cause that problem as well, we used to spray WD-40 on the wires and distributor cap, and even under the distributor cap, to drive away any moisture that could cause the problem. I assume you are using resistor plugs and resistor plug wires. You can check the electric resistance of the wires with an Ohmeter, usually I see them in the 5K to 12K range.
If you are seeing the arcing primarily on one wire, figure out which cylinder that is and pull the valve cover on that side to look for a broken valve spring, bent pushrod, or some other issue. Not likely that this is the problem if the engine is quiet at lower engine speeds, but something to consider. Hope some of this helps - Jay