I'm guessing it's a bad electrical connection somewhere and I agree with PapaJ. Isolate the two systems. It might be easier to temporarily run a #10 wire directly from the battery to the coil, and then try your heater. If this solves the problem, you know its a bad wire or bad connection under the dash. I had a similar problem with HEI and it turned out to be a bad ignition switch. Current for both the heater and the coil run through the ignition switch.