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I'd expect there would be TWO thinner wires at the coil, but it's been a long time since I had a 120. In any case, that one wire has to be in either the + or - side of the Coil's Primary winding.
Any sparking there suggests that the primary current is being opened and closed at random, rather than at fixed times (as controlled by the breaker points in the negative side of the Primary winding) and could be the reason for the sparking "in the wrong place". And might maybe even cause poor/no sparking at the right place.
That thinner wire connection should not be making sparks, and IMO is more likely to cause sparking in the wrong place than the coil itself.
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Bruce Young '93 940-NA (current), 240s (one V8), 140s, 122s, since '63.
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