1. 13º btdc may suit your engine but you can mark the dizzy position and then retard it a fraction. Return to mark if you prefer it.
2. The box is possibly an old school transistorised ignition booster. Some worked OK, but others just got in the way. The ignition leads with the plastic bits in also non-standard. Personally, I would remove the box and change to a good modern set of leads.
3. The cut wire needs to be investigated as it may be one that was cut to fit the ignition box, possible a lead to one of the coil connections. If it is live only when the ignition is on it may be the power wire to the coil.
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