Engine will not start

The electronic ignition module and associated distributor are not original to your 1968 car. They started soon after (1971?). No need to remove it, it is much superior to the original points ignition. However, suspect how the prior owner installed it. Some people hack up the wiring harness and make flaky connections w/ butt crimps. From what your photo shows, it looks fairly competent, however if that loose red wire is not just for testing, it looks flaky.

You need to find where the blue wire goes before we can help you. It has been almost a day and you haven't replied. Next time, don't ask a question until you are ready to follow thru or you will soon lose helpers.