Red dust in distributor

Yes I would. It may be a bearing/bushing wear or on top of distributor you could try a new cap first see if that cures it.

Hello,

Yes the red dust is rust coming from the bearing which coming apart are wearing in the upper part of the distributor which is super common.

Please let us know what happens.

Cheers, Ken

NOTE: Ford does not provide a TDC (Top Dead Center) mark or determination procedure for this engine in this vehicle.
ALLDATA users have reported success using aftermarket tools to determine TDC on this engine.

REMOVAL

Disconnect the battery ground cable.
Remove the distributor cover.
Loosen the three distributor cap screws and set the distributor cap, distributor to spark plug wires, and ignition coil to distributor high tension wiring aside.

Disconnect the distributor ground connector from the tab on the distributor housing.

Disconnect the distributor harness electrical connector.

Remove the distributor electrical connector from the bracket.

Timing Marks On Crank Pulley (Yellow Is TDC)

Rotate the crankshaft until the No. 1 piston is at Top Dead Center (TDC) on the compression stroke.

- Check to be sure that the timing mark (yellow) on the crankshaft pulley and the timing pointer on the engine front cover are aligned.

Note the relation of the distributor rotor to the engine. Make a mark on an engine component to assist with installation.

Remove the distributor bolt.
Remove the distributor and the distributor base gasket.

INSTALLATION

If the crankshaft is rotated during distributor removal, rotate the crankshaft until the No. 1 piston is at TDC on the compression stroke.
Install the distributor base gasket and distributor. Engage the distributor drive gear into the camshaft sprocket. Ensure that the distributor rotor aligns with the mark made on the engine component during removal.

NOTE: During installation of the distributor, the distributor rotor will tend to shift when the gears mesh.

Install the distributor bolt finger-tight.
Install the distributor electrical connector onto the bracket.
Connect the distributor harness electrical connector.
Connect the distributor ground connector to the tab on the distributor housing.
Position the distributor cap, distributor to spark plug wires, and ignition coil to distributor high tension wiring onto the distributor.
Tighten the distributor cap screws.
Install the distributor cover.
Connect the battery ground cable.
Adjust the ignition timing.
Tighten the distributor bolt to 14-17 Nm (10-12 ft lb).

THIS IS PROBABLY THE BEST-US WAY FOR YOU TO UNDERSTAND THE THEORY

OLE DAVID AND CHAD---DO A HECK OF A JAM UP JOB 'SPLAINING THIS. WATCH THEM WITH A MECHANICALLY MINDED PAL THIS MIGHT MAKE THINGS CLICK A WHOLE LOT FASTER

CLASS 1

http://www.youtube.com/watch?v=5a2X9mSSlQY

CLASS 2

http://www.youtube.com/watch?NR=1&v=FHX1yXVyIMg&feature=endscreen

PLEASE DO LET ME KNOW IF THIS HELPS!

THE MEDIC

Any advice on the distributor problem that these Fords have where it fails mechanically. Is it just a matter of replacing the distributor or can other problems be involved?

Yep these cars had a problem with the distributor I would start by replacing it. This should fix the problem.