There are two connections to the coil, [apart from the big thick high voltage (haute tension) wire, which is connected to the centre of the distributor] and one of these becomes live when the ignition is switched on. This wire connects to the "+" side of the coil. The other thin wire goes onto the "C.B." connection on the coil and then goes into the body of the distributor, where it is connected to the points.
This is how it works: when the points are closed the 12 volts runs from the battery, through the key switch, into the coil, out of the coil and to the points, then to earth, thus completing the circuit & "charging" the coil. As the points open the circuit is broken and a MASSIVE voltage (usually about 15-30,000 volts) is sent along the big thick wire, to the distributor, where it's directed to one of the four spark plugs. All of this happens many thousands of times a minute, so it's clear why everything needs to be set up properly!
If you're still stuck, I'll try to explain more-just ask!