where is the starter ground? There isnt one is there?Normally there will be a ground cable from the battery ground/chassis ground to the motor/transmission - just look around for it. If there isn't one then make one up. Yes the battery is good! Have you load tested the battery?Shouldnt the starter pop out and spin when its jumped by a seperate battery?
Perhaps the starter bushing, in the bell housing is worn allowing the starter to jam on the flywheel.
then look to the braided copper cable that goes from the starter positive terminal to the brush holder assembly internally. This is subject to corrosion as it is made up of many very fine copper wires. I had to replace this on a starter of newer vintage than yours. If that is solid then maybe the brushes have worn to the point that they are no longer making contact with the commutator of the starter. Of course if repairs are not your thing then just go plunk down a bag of cash for a rebuilt starter.