Relay should not be grounded and is mounted on vibration pads so everything should be at least 3/8 inch away from metal. Sounds as if relay is working at least. The continuity question depends on how things were connected when you made the test so can't hazard a guess but if solenoid totally disconnected and out then that pretty much leads to wiring or motion as you mention. This is a bottom and side shot of the relay so you can tell if yours might be too close to firewall.
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