noc_81

I ripped apart two HEI (non-ecm), cleaned, polished, and tested every component, but there is still one problem I have before I can put them back together. I noticed when I pulled them apart, I noticed under the pickup plate, and under the felt washer and its holder, the area around the distributor shaft bore, was filled to the brink with some sort of reddish clay-like substance.
I have no idea what this stuff is, and wonder if it is crucial. anybody...?