Hi Jason,
It is hard to say without knowing for sure whether the distributor is a stock unit with mechanical points, or if it has an electronic ignition module installed to replace the points.
The fact that there is a red and black wire coming from the distributor makes it sound like mayby something like Compufire electronic ignition is installed. If so, check this out:
http://www.compufire.com/pdf-instructions/21101_CF1000-VW2.PDF
See figure 3: red to + on coil, black to - on coil.
You can tell if you have points if you have items 1 and 4 under the distributor cap as in figure 1. Electronic ignition will find items 6 and 9 under the cap as in figure 2.
Have fun!
Mark