Willbrunei - I feel your pain...
The coil gets warm from current heating during prolonged KS attempts. Normally the coil is energized only momentarily between engine firing events. When KS-ing, the points can be closed continuously for an electrically "relatively long" time if it comes to rest with the points closed.
Because your ammeter is responding normally when you are trying to KS the machine after water exposure, likely the points/condenser are OK. The points are the low voltage side, so a ground there will not allow your ammeter to return to center normally - it'll look a bit like the points aren't ever opening. The spark only happens when the points open & the coil field collapses, inducing a voltage (& hopefully spark) on the HV side of the coil.
You describe the High tension/ High voltage side wiring as having defects, cracks, loose bits. You are due for some R&R there. The coil HV terminal always has road dirt, salt, etc. on it. Moisture makes this into a conductive soup. IF there are any cracks in the coil boot, plug cap or HT lead the 30 (or so) KV will
track to ground instead of going thru the lead, spark plug and jumping the plug gap, a much higher resistance circuit. All of these HV bits have to be 100% all the time or the spark goes on holiday.
HV is invisible, parts are cheap compared to wasting a day standing by the roadside. The Auto Supply is a great resource here. They carry all the boots, wire, plug caps, connectors you need. Another thing they carry is water repelling silicone boot grease. What I usually end up doing is getting a $15 - $25 "kit" that has way more stuff than you need, but that gives you spares, right?
Starting at the coil nipple, clean the coil top with mild soapy water on a rag to remove grit & film. Wipe it off WELL with clean paper towels.
Then wipe down the "clean" nipple with rubbing alcohol (70% - 90%) to remove any soap film. Wipe it off WELL again with clean paper towels.
Take a Q-tip and clean out the nipple recess with alcohol too, then dry it out. With another Q-tip goober a bit of silicone boot grease on the inside.
The primary wire insulation needs to be fresh, clean & flexible, not stiff & brittle. If it doesn't feel "new", replace it. Metal core if you can get it, otherwise use new "resistor core" (Carbon filament) HT lead.
Find a boot that fits SNUGLY on the coil nipple and stays put. That's where the "kit" is handy, there is a selection of sizes. It can be straight or a 90 degree style, as long as the HT lead doesn't foul or rub against sharp metal.
Check that the selected metal insert actually snaps into place inside the coil nipple.
The tricky bit is installing the inner connector metal insert. Shove the primary through the boot, leave it long. Alcohol can lubricate this process if needs be. Using whatever tools you need to, clamp/attach the end fitting to the wire, then pull it back up into the boot WITHOUT pulling it off the HT lead. Most end fittings seem to require the center conductor to be cut long and folded back into the fitting before clamping to assure connection.
" It seems a very Heath Robinson way of making a connection " ; I wholeheartedly concur...
When the coil end boot/connector combo seems proper, work a little silicone grease under the boot around where the HT lead exits the boot. Wipe a bit onto the coil nipple & snap into place.
At the spark plug end, the cap needs to be 100% also. I like the "screw on" NGK units from Hitchcock's. Again, a bit of silicone grease at the lead end and some around the cap rubber where it seals around the porcelain.
At this point the coil to plug connection has new bits that shouldn't bleed off voltage, & the whole assembly is fairly waterproof at each connection from the silicone grease.
For more money, if there's a "speed shop" around, MSD Ignitions makes pre-fab coil leads. These are nice because they are a one piece molded assembly, and likely far more waterproof than a "built up" one. The tricky bit is finding one that actually physically fits your coil nipple snugly, as mostly these parts are special order. But a new, clean & greased, built up assembly is going to be an improvement over what you have now.
Good Hunting - ACR -