stotman,

The distributor for a polarity reversing distributor has its breaker plate insulated and finds its ground through the reversing switch mounted on the starter. If you disconnect the reversing switch, then you have to ground that second post...just as someone has already done. If not done this way, the engine won't run.

You can leave the wire, or tear the distributor apart and put it back together with the breaker plate screwed to the housing and grounded. Clear as mud huh!

Stuart