Well it sounds like you have excellent spark if it's jumping a 1/2" an inch. Like Steve@advance mentioned. I think once you insert your coil wire into the coil it creates a path most likely from the coil tower to one of coil's small terminals. I've seen this many times. The boot on the coil wire is most likely the cause of this. Carbon arc on a coil tower or dist cap is hard to see but it looks like a pencil mark. (if you were to mark a cap inside with a pencil you'll most likely have to replace the cap) Carbon in pencil lead is very conductive.
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