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NOTE: i don't know jack about distributors so please be patient and very detailed.

1) In taking it all apart i noticed that there was some oilish substance underneath where the module is mounted. Is this ok?

2) Is there supposed to be a felt washer where "a" is?

 

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The oil is from the residual grease, or actually is oil, for transferring module heat from the module to the dist body for cooling of the module.
Yes, should be a felt washer at 'a'.
 

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As Everett...the felt washer is to stop excess oil climbing the shaft and getting past the sintered bushes.

Generally the only thing that wears in a dizzy (other than cap, points condesors in the case of pre hei) is the shaft....yes the shaft wears with little wear in the bushes, and generally just a shaft replacement is all that is needed.....2nd time around it gets more complex with bush replacement, and this needs alittle more knowhow, tools ans cant be reemed as they are sintered bushes.

Therefore the advise above about simply buying a new one and cheap is excellent advice.
BUT...there are 100s of combiations of dizzy specs, and VA specs, combine those and one gets pages of fine print of dizzy specs in the AC Delco Electrical service manaul....
So assuming your old dizzy was tuned/dialed into your engine,
u need to make a graph of
your cent advance, advance over rpms in 500 rpm incruments
how many degrees in the cent
the start and finish of the VA in HG and how many degrees in there.

Keep in mind HEIs and dizzys made after mid 70s (all makes..GM Ford Dodge etc) are ported vaccuum for pollution addons and not for manifold vaccuum for our older cars/setups.
Sometime one can hit it lucky and have one with specs that are close.
How to change the curve, amount of degrees in the cent, the VA unit is not hard and described in detail in older threads on the subject, along with how to establish the correct curve for your engine.
 
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