Bypassing ballast resistor

Refer to the destructions with your new system. Some need a ballast and some do not. I cannot tell what you are doing with the relay.

To answer your question, to actually bypass the ballast on the old 2 pin ballast, all you need is a one-wire jumper between the original connectors. If however you are NOT connecting to the original coil+ wire, you will not be getting power during cranking likely

So far as "shooting fire" you have the distributor installed 1/2 turn out referred to as "180 degrees off"

To properly find the firing stroke,

Remove no1 plug. Bump engine around while holding your finger in the no1 hole. You may have to 'go round' a couple times to "get" this. When you START to feel compression, stop and look for the timing marks, then continue to "bump" or wrench the engine until the timiing marks align either with TDC or set them "about where" you want the timing, AKA 8-10 BTC or so

No install the dist, and make sure the dist. body has plenty of movement to adjust. Put no1 wire in making certain it is on the cap tower where the rotor is pointing. Install rest of wires and set timing