The points allow the primary winding in the coil to energise, which induces a magnetic field in the much more wound secondary coil to build and then, when the points are opened by a cam arrangement, the magnetic field inside the coil collapses and a large voltage (could be 20 kV or greater) is produced in the secondary winding.
The points are just two contacts mounted on a base plate, with on econtact bing oushed up and down by a cam on the distributor. They can melt, close up, move and burn. They are a pain to maintain and you need a dwell meter to set them properly. Setting the static timing is no more complicated than rotating the engine until you hear them open and seeing where the marks on the crank pulley align. You can try to fix the gap when on maximum cam with feeler gauges and this will approximate to the dwell gap.
The dwell gap is for the coil to de energise, to give it enough time. If set incorrectly the spark energy produced will be effected.
The capacitor is attached to the points (that little can on the side of the distributor) and has two functions:
1) it absorbs the back EMF from the magnetic field in the coil to minimize point contact burning and maximize point life; and
2) it forms a resonant circuit with the ignition coil transferring further energy to the secondary side until the energy is exhausted.
Changing the condenser will not fix your issue, which I suspect is points or points gap related. However a failed condenser may have lead to burned points.
This system became the primary ignition system a century ago and for many years it was used due to its low cost, high reliability and relative simplicity. However it is not maintenance free and it is sooooooo much easier to have an electronic pickup.
BagusJeep lives in Bali.
1981 CJ7 258ci - Bagusjeep
1984 CJ7 258ci - Puthijeep
1981 J20 258ci - Gladys
1951 Willys CJ3A/MB/M38 - Little Willy
1995 Cherokee 4.0 - CHEROKEE