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Looking in the distributor, when I installed the points and condensor I have the condensor wire and the wire from the coil which is coming into the distributor secured together with the screw that then comes through the fibre part of the points, is that correct?

If you are getting a spark at all, then the wiring should be OK unless there is some kind of intermittent ground on the wire going to dist.

There have been several instances of the soft fabric covering on the wire between the outside terminal and points connection disintegrating or becoming frayed and wire grounding out. That is usually a permanent thing though unless something besides the rotor is moving inside the distributor and hitting or moving something causing it. Too long a screw could also cause the same thing.

One other remote possibility is the ign switch is heating and opening when the current through that particular coil contact is long or heavy enough. Re establishes contact when cooled. Don't know enough about the wiring thru the switch and armored cable on yours to know if that is a possibility but has been an issue on later models.

I attached a picture of the points and condensor to make sure I am attaching the wires from the condensor and the coil wire correctly. I am attaching both wires together on the arm from the points. So the arm from the points and both wires are touching. Is this correct?

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Looks like your correct with the points,make sure that the lead wires don't ground out in the distributor.
While you have the ditsributor out -you can check spark to all the secondary components.Run a jump wire from the engine block to the distributor housing and re-connect the dist to coil wire. With the spark plugs removed and properly grounded you should be able to see all 8 firing with a spin of the dist shaft with the ignition on. Note- don't touch the wire from the coil to the points- its painful.

Don't trust solid core wires, they will disapoint you.
Your local auto parts should carry all your tune up needs,I use the Napa Auto around the corner.Delco or Autolite parts are very common through the years.

From the pict out of service manual, it appears they both go to same place.

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Ok, no spark at all coming from any sparkplugs, but a good constant spark from coil lead out of the coil. It has to be either a bad cap, or bad rotor, both are new. If it was the sparkplug wires then they all must be bad which could happen. Hi Ho Hi Ho its off to Napa I must go.
Just one more thing I just noticed. When the ignition key is off and removed the amp gauge is flickering from the centre to discharge back and forth, any thoughts.

The flickering of the amp gauge turned out to be coming from the light switch, I could here an arching behind the dashboard and could not find it. Once it got dark I put my head behind the dash and could see a very faint spark coming from the large switch behind the headlight switch. There must be a short in the light switch, nothing to do with the starting, but I thought I would share that with you. I turned off the master switch, I will tackle that later.
Having had lots of English cars I am used to problems with electrics, they do call the Lucas system the Prince of Darkness.
Back to the problem with the starting tomorrow.

That's the self resetting circuit breaker or thermostatic overload relay as Packard called it mounted to the back of headlight switch. If it's cycling with switch on there is a large overload or short in something the switch feeds but if off, a short in switch itself as you surmise. Kind of surprising. Several reports of switches making poor contact & lights dim or flicker but none shorting that I remember.