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found that even when they are separated, there is constant continuity between both of the spark timer points. Is that normal? I can't see it being so as it has to complete a circuit for a spark to fire. (I think this might mean that the condenser can never charge enough to produce proper spark).

I'm not clear on what you mean there. I think you mean that your resistance meter shows a finite resistance across the points when they are open. It inevitably would, because of the capacitor across the points, which has to charge before it could show open circuit even if it didn't leak, which it probably does. The charge time for the capacitor might be very long indeed if you were using a digital voltmeter, which has a series impedance of 11 Megohms.
Edit: On top of that, the points are for DC purposes, connected across the coil primary, so the primary resistance of a few ohms is the highest reading you could get even if you disconnected the capacitor.

Your capacitor might well be faulty - they were usually the least reliable component in the ignition circuit - but I can't see that causing high tension voltage to be applied to the moving breaker point. That point is only connected to the capacitor, and the earthy end of the coil primary. The earthy end of the coil secondary is supposed to be earthed to the coil frame.

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If the secondary has lost its ground, it may be possible that it has somehow (probably due to arcing) connected itself to the primary, which might cause approximately the symptoms you have. It would also cause gross arcing across the points, and would gut the capacitor in short order.

Last edited by grumpy; 07/02/12 07:29 PM.