An ohm mter or simple continuity tester on the side terminal with other lead to case ground ought to register:
CLOSED CIRCUIT SHORT (Low resistance) WHEN POINTS ARE CLOSED
AN OPEN CIRCUIT (High approaching infinity resistance) WHEN POINTS ARE OPEN
If its ALWAYS is a short to case ground, the problems either:
Points are staying closed,,,,,,,,,,Condensor is bad and shorted out (Ive seen new ones out of the box bad and shorted out, try unhooking it n see if that fixes the short) ,,,,,,,,,,,Wires to condensor or points are shorted out to case ground,,,,,,,,,,,,,Points have a short (I have seen the springs shorted),,,,,,,,,,,,Side pass through insulated bushing terminal (where coil wire attaches) is shorted out.
Once more,,,,,,,,,,, a simple cheap DC test lamp placed on the distributors terminal or on the coils output with ignition on and if all else is wired correct and working SHOULD LIGHT UP WHEN POINTS ARE OPEN AND GO OFF WHEN THEY ARE CLOSED and if not re read my post below to see why and the possible problems
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