Elect Ign Distributor Output LOW?

The Chyrs elec ign dist does NOT have to be grounded. A GM HEI dist DOES have to be grounded.

Your voltage readings sound like they are in the ball park. A couple of things to check. When you check the air gap, examine the gap for each reluctor tooth. I have found a variance on cheaper dists. If you find a variance, file down the tight gapped teeth so that you can the gaps equal for each tooth.
I never liked the grouping of the p/up wires with the coil [-] wire. This wire has a ~250 v pulse on it & could cause either no triggering or false triggering. Try separating this wire from the others. Also make sure you have no high tension leads near the p/up wires.
You could also have a voltage supply problem to the ign system. Voltage drop causing low voltage & just not enough voltage to produce a spark.