when the points are closed u will get continuity. open no cont. with sw to on position u should be getting ~9 v. the only time u get a full 12v is IF u have the coil also tied to the starter and in the start position only.. and dwelling is better in my opion, if not alot easier. if u want to get rid of the points i suggest..
pertronix or mallory points replacement.. both have worked for yrs for me..