My question where or not this is correct regarding the set-up left to right: screw, fiber washer, spring, points mounting plate, fiber washer, coil lead, condenser, nut. Thanks and if incorrect, I would appreciate the correct sequence.
If I recall correctly, there is a metal tab with a hole on it that holds the spring half of the two points plates. As you can see, the metal tab is connected to the engine which makes it "electrically" at frame potential.
You can also see that the other half of the points, the fixed point plate, is also connected to the engine with a metal connection making it electrically at frame potential as well.
The spring half of the points plates needs to be electrically isolated from the frame so that it does not conduct electricity when the point plates "open" (separate) by virtue of the cam lobe pushing the two points plates apart. So the problem is that the metal screw that secures the sprung points plate to the bracket will bring the sprung points plate to engine potential. We need to electrically isolate the sprung points plate but we need the metal bracket and screw to mechanically locate and secure the spring.
It's OK that the screw touches the spring - we want that to be one common electrical node.
So as Jordan points out, there is something that needs to go in the hole of the metal bracket that holds the sprung points plate to electrically isolate that metal points plate and the spring it's mounted on from the bracket. Look for either a non-conductive sleeve that would fit over the screw threads yet within the bracket hole, or perhaps one of your two fiber washers has a collar on it.
The collar or sleeve has to rest in the bracket hole so that when the nut passes through the bracket its threads will make no metal-to-metal (electrical) contact with the bracket. The second fiber washer keeps the condensor, coil wire and nut from electrically contacting the bracket. Although difficult to sequentially construct, this keeps the spring electrically isolated from the frame. The only way then that the sprung plate and mounting screw go to engine/frame electrical potential is if the points plate at the end of the spring touches the fixed points plate.
So I think your sequence should be "screw, spring, fiber washer with a collar which will face and drop into the points mounting plate, points mounting plate, fiber washer, coil lead, condenser, nut. " When you are done rotate the engine so that the cam lobe is under the fiber block. At this time the lobe and fiber block should be collaborating to lift the sprung points plate up and off of the fixed points plate.
Using your continuity tester check the spring mounted points plate for continuity to the engine and/or frame. There should be NO continuity. If there is continuity, loosen that rusty screw and slide the points assembly inward such that the points plates separate. Then tighten down the screw.
Rotate the engine to bring the cam lobe out from under the fiber block. The two points plates should touch, and a continuity check should indicate that the sprung points plate is electrically connected to the engine/frame. Bring the cam around again, slowing as you get to the fiber block. As the cam lobe pushes the fiber block check that the sprung plate looses its connection to the frame.
Now you have operational points plates. The next thing to do is to set the points gap, the gap that the lobe is creating, with a feeler gauge. Again, you will loosen the rusty screw and carefully adjust the gap using the feeler gauge resting between the points. Then re-tighten the screw and the points gap is set. Check it though, it usually takes a few tries to get it right.
Lastly you will have to set the timing of when the points open with relation to the piston's position on the compression stroke which is the subject of Carl Liebold's write-up.
Jim