I suspect the problem is moisture, which in turn causes the corrosion.
The corrosion is likely not the problem. When moisture gets in the distributor, it tends to condense on the underside of the cap. The moisture is somewhat conductive and starts the process of "carbon tracking", which will short between the terminals causing a missfire, or track to ground stopping it all together.
Be sure everything is in place, some have a dust shield under the cap. If it's missing the cap won't fit properly, water will get in. Check the grommet where the wire goes through the distributor housing.
Also be sure the distributor is protected from rain as best as possible. If it lives outside, you can cover it with a plastic cut off jug, or form a sheetmetal deflector to shed water. And be sure the thermostat is working. Sometimes moisture condenses from the crankcase if there is excess moisture in the oil.
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Today's Featured Article - Earthmaster Project Progress Just a little update on my Earthmaster......it's back from the dead! I pulled the head, and soaked the stuck valves with mystery oil overnight, re-installed the head, and bingo, the compression returned. But alas, my carb foiled me again, it would fire a second then flood out. After numerous dead ends for a replacement carb, I went to work fixing mine.I soldered new floats on the float arm, they came from an old motorcycle carb, replaced the packing on the throttle shaft with o-rings, cut new ga
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