cool. flywheel looks right. in that video, the guy takes the points out of the equation, and is just using the battery as "points." i don't think that wire in the back is doing any harm. but you could find different spot to ground it - outside the ignition is fine, case bolt etc.
for due diligence you could test the isolated points operation in situ. remove the leads for the condenser and ignition coil and get them out of the way so you can put your flywheel on. then you can test points operation by testing continuity between ground and the hot side of the points - where you had the two wires connected.
if you were to leave the wires connected, you wont be able to pick up on the reading well, if at all, because the condenser and ignition coils are ultimately connected to ground. you need a buzzbox or timing light set up to do it with everything connected.
i have seen either low quality or just wrong points that don't leave enough room and hit stuff they aren't supposed to. cleaner the better too.