Which "lead wire" are you referring to? Disconnecting/ reconnecting either of the two "push on" connectors at the alternator (the field connections) WITH THE KEY in "run" will probably result in a small spark --normal
If you are referring to the big stud connected output wire, this should NO spark under any conditions. IF you touch it to ground, you will have 'big' problems
Have you replaced the distributor? Checked the reluctor gap? Take a voltmeter and connect to the connector coming off the distributor, and crank the engine. With your meter set to read low AC volts, the distributor should generate 1V AC when cranking.
Are you getting "juice" to the ballast? That's the "dark blue" (normally) coming from the key through the bulkhead to the ballast resistor.