John V, your question "What is the purpose of the yellow wire in my picture that also goes from the coil but connects to the side of the distributor? It is the smaller, thinner wire."
ANSWER the small yellow wire that leads FROM the coils small LV Primary terminal TO the small terminal on the side of the distributor is to conduct the coils LV primary current to the distributor and its internal contact points. When the points are closed current flows through the coils LV Primary to ground via the closed points and when the points break open coil current suddenly stops.
The coils other LV primary terminal is what gets voltage via the ballast resistor when the ignition is turned on.
A test lamp on the coils LV primary output (small yellow wire to distributor) as engine is cranked over needs to flash ON when points are open but go off when they are closed.
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