[cadillac512]

With key on, every time the points open (from a closed position)you should get spark from the coil wire end that hooks to the distributor cap. Opening them by hand should make that spark. The points ground one side of the coil when they close, and upon opening the spark is generated. Your points seem to be operating correctly (as long as they are opening/closing while cranking-worth checking!!) so the problem may be coil or condenser.