46 In Progress,
I am going to start flapping without having ever seen your type of distributor.
Your wiring is perfect as you have stated. Key switch to positive of coil and negative of coil to distributor.
If you are going to scrap the polarity reversing switch, which would probably be a good idea, you will connect your primary lead wire to the distributor post that captures the points spring.
The other post needs to be grounded to the distributor somehow..maybe with a small external wire, or removing a insulating bushing.
I am guessing that the distributor plate(or points&condenser) in your rig is insulated from ground. The manual says the polarity reversing switch would supply voltage to one distributor post, while supplying a ground to the other..this polarity would be reversed every time the rig was started.
In a conventional distributor, the points ground through the housing. In your old style, ground was taken back to the switch on the starter and flip flopped each start cycle.
If you have a ohmmeter, you could confirm this.
Keep in mind, I might have my head up my...
edit: Yahooo for Stu's memory..and the link.
http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=3;t=002154#000008
Stuart