@ Haywirehiatus
Hats off to Storm for getting correct answers to our wiring mystery. The wirng diagram provided is simple to follow. The Note applies to you since your bug does have an external ballast resistor.
Let us know when its fitted in the bug and do post a pic or two to show your efforts!
Yes the fuel filter is in the wrong location. In fact you are running two filters and both are in the wrong location. The reasons for not having this setup is the risk of fire and one more thing for which you can refer to my earlier posting.
What you can do is get new piping for the fuel line (you are using the correct braided type of hose currently) and attach everything with new jubilee clips at each connection. Jubilee clips don’t cost much but are essential must haves in any car’s fuel system for that matter.
Please also refer to my posting regarding the shape and routing of the vacuum advance piping and the theory behind having such a setup. Your car’s engine is displaying a classic case of what goes wrong if you have a short direct pipe to the vacuum advance unit. Look closely for the answer …..you have all the clues in my earlier post.