tractorboy,
I'm a little hinky to answer this outright, so I will say, I 'think' this test might be marginal. Your light might not be a good indicator of what is happening.
Grab your wife again and do the plug to ground ZAP test! This is a go/no go deal!
If you have a gap gauge, it isn't difficult to just set the points and take them out of the equation.
You might do a search in this forum..use the little 'search' icon at the upper right hand side of this page. Type in a phrase like...'points' or 'how to set points' or 'setting points'...you get the idea.
Stuart