MrTube.....
Lets try another approach :
1. When the points close, the current in the coil's primary creates a large magnetic field.
2. When the points open, this magnetic field collapses since their is no current to keep it present.
3. When a magnetic field collapses, the changing amount of magnetic field creates a current in the secondary and because the number of turns of wire is large, a large voltage is produced in the secondary. The amount of voltage is related to the rate that the field collapses and the number of turns of wire...so you want a fast collapsing field.
4. When the points open, the current that was going into the coil from the battery wants to continue to flow...this is called inductance. Since the current tries to keep flowing when the points open, a spark will form which is the current trying to keep flowing.
5. The resulting spark at the points is wasted energy that could have been in the collapsing field, thus the spark at the spark plug is weak.
6. If a cap is placed at the points, then the current that was trying to flow by jumping across the points is diverted into the cap. After a very short time, the energy in the cap flows back out into the coil and boosts the collapsing field, thus increasing the spark at the spark plug.
7. Moving the cap from the points changes this flow of energy from the points to the cap and back to the coil.
8. It's not really a "tuned circuit" in the RF sense, but it's like a tuned circuit.
9. If a diode is uses instead of a cap, then when the points open, the energy from the current trying to keep flowing (inductance) will flow into the diode and become heat and you will have a poorer spark than you would have with a cap.
Marc