Thanks for all the responses. Sounds like I should ground everything to the frame for good measure? Why doesn't the factory manual ground the battery to the frame?
By the way, this 58 had a new universal wiring harness, probably from Painless or some other company (I couldn't find a logo on it). I don't have the manual but luckily the wiring still had the tags where the "groups" went i.e. rear tailight group, headlight group, radio group, etc. When removing I added my own labeling as well so that should help. I replaced the points distributor with an Accel breakerless one. It says to bypass the resister, is that correct? The altinator is a late model internal regulated, do I need to keep the voltage regulator?
This stuff is intimidating!