[Dave at Pelican Parts]

The wire from the points goes to the condensor, then that wire goes to the (-) terminal on the coil. (The wiring diagram shows this, too, though it calls the terminals by number instead. But the numbers are on the coil too...)

Points gap is in the Igntion section of Haynes. 0.016" is the gap. That should give you a starting place for setting the dwell angle.

--DD