"if I put a small piece of wood between the contact points I have power to positive side of the coil and the negative side"
Based on that info, my GUESS would be that the breaker points are set "too tight" and are not breaking (opening) as each distributor cam lobe passes under the wear block on the moveable breaker point.
But maybe we should back up a little... have you cranked the engine to a point where the rubbing block is on the can and verified that the points DO open? (.020", IIRC.)
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