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You have everything right by what you stated. It doesn't sound right the way the switch is wired because that's not the way most cars are wired, but that's the way Ford did it. The switch connects the ground side of the coil to the points. Once you get it running you can buy the correct cloth covered wire from many parts houses for not too much money. It will look much neater and make future trouble shooting easier.
As Kurt said, if the pan hasn't been removed for years, it would be good to check it for sludge. I've found as much as an inch thick crud in some.