Voltage Regulator Question / Pertronix

When you say bypassed do you mean that it is hooked to the 12vdc ignition switched side of the ballast, or did you hook it straight to the battery? I have the origianl pertronix 1 set up. I wired it to 12vdc ignition switch side of the ballast. has worked great for me for over a year. Never had any kind of alternator issues, that round piece looks like a capacitive filter of some sort? I don't have one on my 64 Barracuda, 273. Hope this helps some.