inside the distributor,under the cap and rotor, there is a small spring loaded contact that opens and closes every time the lobe on the distributor shaft rotates. that is the contact points.
they look like this:

you may as well change them out and install new ones so here is a basic procedure on how to do them.
disconnect the battery and the igniton coil lead to the cap.
there are two screws that hold the points in place. loosen both of them and carefully remove the wire that connects to the contact stud.
it looks kind of like this :

see that little stud near the cap clamp bottom left? thats the contact that the points are connected to.
while you are at it, change the condenser too. its that little round bottle looking thing outside the distributor with the wire coming out and connecting to that same stud. has one screw that holds it in place. just be careful when removing it as it holds a slight charge.

take the new points set, and install them in the distributor, but dont tighten the hold down screws just yet.
get a socket and ratchet and rotate the engine by hand until that lobe is in position to open the points.
tighten the left screw a bit but leave it loose enough to move the contact assembly.
Take a feeler gauge and rotate the entire assembly until its only open a specific amount. i think (but im not sure) that mine are set at .016 .
carefully tighten the screw on the right side, and then the left side.
check the gap again. make sure its within spec.
connect the wires to the stud and put everything back together. If you did it right, the engine should fire right up.
see if you can find a dwell meter to set them more accurately.
hope this helps!
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