The red/black wire should be going to the I terminal on the fender solenoid to provide power when the starter is turning, once running, power comes through that ballast resistor.
I have never seen a distributor that looks like that, so maybe it is a prestolite.
86/00 CJ7 Laredo, 33x9.5 BFG AT's, 'glass nose to tail in '00, 'New' frame,wires and plumbing in '09. Carter BBD Carbed 4.0 HO in '10.
89 YJ Renegade. BBD Carbed 4.0 HO. Locked front and rear with 33x9.5 BFG AT's
Some Canadian Bush Jeep Runs and Build Photos: http://mikeromainjeeptrips.shutterfly.com
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