[HydroTek]

Rusty tip on that light -- use some sand paper or a file to "freshen up" the point on the probe -- and be sure the clip is on a good ground

You should have power on that terminal in your pic with the key on
and the test light should flash, when cranking, with the tester on the other coil terminal -- this tests the points

Do yourself a favor and change out the points for a Pertronix kit

 

[HydroTek]

The plug in switch was factory -- same as the cub cadet mowers with the generator start
IH used to sell a bendix starter upgrade kit -- I have installed a lot of those

use Ox-Off electrical grease on the terminals of that switch
you can get the grease at the hardware store or electrical supply house -- GB is one brand