The coil should not be passing electricty through the body of the coil. The Arc you describe is because your coil is bad and passing the voltage that should be going to you distributer cap and on to the plugs is shorting somewhere (often a defictive boot on the big wire or dirt and or fluid on the top of the coil). If you have an external resistor then you need a non resistor coil. If you have no resistor then you need a coil that has an internal or built in resistor. The coil grounds through the the small wire that goes to the points or IE in the distributer.
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