It's a bit difficult to see in the picture of the coil as to what is connected to what?
It should be the blue wire from the ignition to the + terminal on the coil, red wire in your case from - terminal on the coil, to the distributor terminal post where yours is, along with the condensor.
I am not familiar with this type of distributor but it still has points that need setting and needs to be rotated to set the timing as per normal. The only difference really to the standard set up is that it has a dual ignition coil and no rotor arm, so both HT leads will spark at the same time, so you can't get the HT leads mixed up.
I would static time it first by lining up the timing marks on the flywheel and the timing chain housing, switch on the ignition and then rotate the distributor back and forth a little and see if the points are opening and closing and you are getting a spark at that points. Remember to switch off the ignition once you have finished testing or you might burn the coil out.
In a normal setup with a standard distributor and single coil, if you are getting no spark at the points it is usually because you have set the timing 180° out, but I trying to get my head around it but I don't think you can do this with a wasted spark setup????? Anyone else want to confirm if this is correct or not?????
Tony