Try replacing the condenser on the point set. It mght have been marginal and when you pulled off the wire it fried it. If the points have not been replaced in awhile do this also. Don't forget the lube on the wear block on the points.
Also most mechanics these days don't know anything about diagnosing or replacing the points. I know this from being a mechanic myself since 1969 and retired as a Shop Foreman in 2006.
IIRC there is a distributor on some of the old Onan generators.