When we refer to pulsing, it doesn't mean it's something you can see go off and on. It's a very high speed pulse and looks like a continuous spray to the naked eye. By your getting a spray when you ground the blue wire could mean that you have a faulty circuit on that side.
There are a number of ground wires from the engine to chassis and cradle. Just because you have a ground from the battery to the engine doesn't mean that ground is continuous to the ECM or any other part of the car. Inside the console just below the ECM is a black wire that is used for a ground. Make sure that's secure.
Going the cheapest route of throwing money without having a definitive solution, I'd pick up 2 or 3 braided ground straps. You can usually find them on the HELP rack at the parts stores. Generally they are 6 to 8 inches long. Bolt one from the engine to the deck hinge, one from somewhere on the block to the cradle and if you can find any other place to ground the engine and chassis, without the danger of it pulling taught when the engine moves, I'd put it there, too. Or just get a small coil of multi-strand insulated wire of a good gauge and make your own ground wires.
Where are you? Are you close enough that one of us can help you?
