Try this:
Remove the distributor cap.
Turn the key back on and get the points closed.
Verify that the voltage on coil - is 7.7 volts (or so) as you mentioned above.
Measure voltage from the outside terminal on the side of the distributor case to ground. If it is 7.7 volts go to A below If it is zero volts the wire from from coil - to the outside terminal is bad. If it is significantly different than 7.7 or zero volts let me know. Something funky going on.
A. Measure voltage from the inside terminal on the side of the distributor case to ground. If it is 7.7 volts go to B below If it is zero volts the terminal from outside to inside is bad. New ones are available from Steiner Tractor. If it is significantly different than 7.7 or zero volts let me know. Something funky going on.
B. Measure voltage from the moving arm of the point set near moving point itself to ground. If it is 7.7 volts go to C below If it is zero volts the connection from the inside terminal to the moving point arm is bad. If it is significantly different than 7.7 or zero volts let me know. Something funky going on.
C. Measure voltage from the fixed (non-moving) the point to ground. If it is 7.7 volts go to D below If it is zero volts the points are bad. If it is significantly different than 7.7 or zero volts let me know. Something funky going on.
D. Measure voltage from the plate the points mount on to ground. If it is 7.7 volts go to E below If it is zero volts the connection from the point set to the plate is bad. Remove the points, clean up the area and try again. If it is significantly different than 7.7 or zero volts let me know. Something funky going on.
E. Somehow the plate is not grounded. Some distributers (I don't know about yours) had a wire under the plate from the plate to the case of the distributor. Checking it requires disassembling the distributor.
'57 GMC 102, Original 347 V8, HydraMatic, 3.08 rear gear, added A/C, disk front brakes, HEI, AFB carb, '98 Honda Black Currant paint. T-boned and totaled 10/12 '52 GMC 152 Stake Bed, Original 228, SM420, added A/C, HEI, disk front brakes, '67 Chev 3.55 rear gear. Gets used as a real truck.
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