If I used the digital multimeter instead of the light bulb circuit I would close the points and measure the resistance of the circuit from the coil to the other end of the points. It would probably be very close to 0 ohms.
Then I would gradually open the points until I see a spike in the resistance right?
Next week I'm going to fix up a puch that a local beer supply store owner has. It just needs the tank cleaned, the carb cleaned, and the points adjusted. And I figure that he's a good guy to be friends with..