This is the connector for the Hall effect triggering system. This system uses a rotor with slots and a sensor inside the distributor to signal the spark module to power the coil and fire the sparkplugs. Disintegration of the connector is common. The easiest solution is to replace the distributor. Or you can buy the Hall assembly and rebuild your distributor. The rebuild will either be a cinch or a PITA depending on whether or not the slotted rotor is stuck to the shaft. If stuck, you can make a mess out of things trying to pull the rotor without a special tool. If it slides right off, piece of cake. You might be able to get away with just replacing the connector on the side of the distributor.
I suggest you give Jim Moncrief at Sobstory(site sponsor) a call 800-583-0370 for advice and he has the part(s) at a good price.
posted by 69.249.5...
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