In diagnostic mode, the cooling fans are supposed to be off with the throttle closed, but both cooling fans are supposed to come on at high speed when you open the throttle ever so slightly. (This is known as the "fan method" for adjusting the throttle position sensor.) I think it's some sort of "fail safe" mode to prevent overheating if the ecu is not getting a proper reading of temperature. But I doubt that is related to the no spark problem.
I would suspect the distributor, because it's a known weak spot. But I'm just guessing. (I suppose you have checked the timing belt has not broken, and that the distributor rotor is turning?)