1965 Valiant ballast resistor question

You want to make sure that is a good connection and not going to short. Other than that "OK"

One wire is power coming from the key, and a splice feeding off the the voltage regulator. the other wire goes to the coil+ and the wire junction with it (usually brown) is the bypass circuit. You need that as the "run" circuit goes dead during starting and that wire then feeds full battery voltage to the coil