Mike,
The test that you described only shows the voltage drop between those places. Don't worry about it as it is pretty much useless for our purposes. The important thing is that you do have 12 volts to the coil. Now, in order to make a spark, the current must first flow through the coil, through the points, and then to ground. When this happens, an elecro-magnetic field builds up in the primary windings of the coil. Then the points open, breaking the circuit (hence the name "breaker points). When the points open, current stops flowing, and the electro-magnetic field collapses, which induces a voltage in the secondary windings of the coil. This voltage is MUCH higher than the primary voltage, and it builds up to a high enough level to finally jump the gap at the spark plug. That is how the system works. So now you need to see if you have continuity through the coil by checking to see if you have 12 volts at the negative terminal of the coil. You may need to unhook the wire from the negative terminal. If you have voltage coming through the coil, leave the wire off of the negative terminal, and hook a jumper wire from the negative terminal to ground for a second, then remove it. You should get a spark when you remove the jumper. If not, the coil is bad. I have seen brand new coils that were no good. If you do get a spark, then you need to verify the continuity through the points to ground. With the ignition off, use the ohm function of the multi-meter to check from the negative terminal to ground. You will need to rotate the engine slowly by hand to get the points to open and close. When the points are closed there should be a direct short to ground. As they open, the resistance should go to infinity. That should keep you busy for a while.
Have fun,
Joe