Second take off the the cap and mark the rotor position on the body of the distributor.
I left the coil on and just pulled the distributor. You can change the points and set them without pulling it off but its much harder. I was not able to change the condenser without pulling the distributor off the engine.
Third Mark the shaft in the bottom of the distributor. Be carefull it may pull out of the distributor housing. If it does line it up where you think it goes slide it back in the engine and check to see if the rotor is in the position marked earlier. If not try again and mark when correct.
Four Now you have the distributor sitting on a clean table. Take off the rotor. Remove the cover for the points.
Added by Eugene
Under the rotor is supposed to be a felt. This felt is to be lubricated. It is located in the center of the distributor cam. It's the hole in the end of the shaft that the rotor sets into
So couple of areas to check, lubricate. Take the distributor and set upright. Put 8 or 10 drops of light weight oil on the felt and let soak for a while. Then holding the rotor, turn the distributor drive gear to open and close the advance mechanism. Continue adding a drop of oil and working the advance mechanism back and forth until it frees up.
Put a drop of oil on the weight pivots and at each spring anchor.
Grab the distributor shaft try to move it side to side. If it moves more than a few thousands the shaft or bushing is worn out. And may cause the to skip or miss.
With the rotor on and holding the bottom of the shaft from turning. Turn the rotor back and fourth. It should move freely a 1/2 inch or so. This is the spark advance. If it does not move your timing will not be right.
Five Use the distributor point lube and lube the point rubbing block. Slide the end of the point spring into the retaining nut. Then gently work the points onto the pivot pin.
Six Put the condenser back in hook the wire back over the retaining nut for the points and tighten.
Seven Set the points on the high spot of the distributor cam lobe (open position) adjust the point gap to .020 by putting a feeler gauge between the point top and bottom striker plate. Adjust by by moving the striker plate in and out. Tighten striker plate and recheck gap as it tends to move when tightening. Check point gap on all four lobes of the distributor. That will tell you if their further problems.
Added by Bigdog
With the rub block on the points arm sitting on top of the lobe, the points are opened at max. With the points in this position, the striker plate (which is held in place by a screw) is adjusted so that the point gap is .020". This can be a tedious adjustment because as you tighten the plate back down, it tends to move slightly. I use a .020" feeler blade and set the points so there is just a very very light drag of the blade. Always re-check the gap after tightening the plate down. If you set the gap on one lobe, it should be the same on all four lobes but it might be off a little if there is wear on the shaft or lobes. By checking all 4 lobes you can set the gap for optimum if there are differences in the readings.
Go ahead put the distributor back in and check the timing. As it may have moved some.
Good luck Billy