I think we all agree the problem is the voltage is only 1.2 volts at the moveable arm. My suggestion to try moving the key in the ignition switch and few times and checking to make sure the voltage doesn't drop at the moveable arm is that it doesn't require taking anything apart to check it. If the voltage changes, it is probably the ignition key. If not, it might be the wire inside the armored cable going from the switch to the distributor. The only way to check that as others have stated is to remove it from the distributor by unscrewing the large end that enters the distributor. That means you have to either remove the distributor from the engine or remove the wire from the back side of the switch, pull the wire out from behind the dash, then unscrew it from the distributor.
I did all this last fall after mine quit on the way home. I found I had both a bad switch that had been packed with grease, causing intermittent voltage at the distributor, and a frayed wire inside the cable going to the distributor. I figured this out after buying a complete new distributor cause I hadn't asked for help like you are! Keep after it, your getting close.