Jered,
If you power the side of the coil with the + on it from the battery, and alternately touch the wire from the terminal marked with a - to ground, the big fat coil wire should ZAP when held near a ground. This zapping is being triggered as you alternately touch that - wire to ground...that's what the points are doing for you.
Coils can go bad, but more often, it's points that aren't adjusted properly, and occasionally it's a bad condenser...usually the points though.
Welcome to the Stovebolt.
Stuart
