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Yes, you can blow a coil by leaving the ignition on/engine off...if your points are closed. If the points are open, there is no ground circuit to the coil, thus...no power. Blown coils can be a huge mess. Black tar stuff all over under the hood. Been there, done that. That is probably what the "oil" stuff coming out of yours is...
As for running a 122 with a remote coil hooked straight to the battery... It will run forever like that as long as the coil is hooked up. For that reason, any car without locking steering is pretty easy to steal, so keeping the car locked is a good idea. Getting a 122 running is about about a 2 minute project if you've got a coil, some wire, and you can get under the hood. Been there, done that too (when I've lost keys...I'm not stealing cars)...
-Matt
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