Are you saying there are two holes in the case? One for the wire and one for the bolt that holds the points spring and the wire for the condenser?
If this is the case, either it is not an IH distributor or someone has fudged something and drilled an extra hole for the wire for reasons unknown. The correct connection is to have that wire attach to the bolt on the outside of the case. If the wire comes through a hole and connects to the same bolt on the inside, it should be electrically correct, but anyone who opens it up and looks at it is going to scratch their head and go "Huh?" (The bolt is not grounded--it passes through a plastic or fiber insulator so that it does not ground to the case.)
This post was edited by TheDurk at 09:17:40 10/19/10.
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