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it is called a ballast resistor and one side goes to the ignition "run" position & the other to the coil IIRC. I'll bet that if you do an aftermarket HEI conversion the instructions will have you eliminate it.
Yep that is a resistor pot. On your 77 you probably did not have the built in resistor wire for a Motorcraft module. The terminal that feeds the coil should be coil and ignition relay 'I' terminal so the coil gets 12 volts during cranking, but only gets about 4 to 8 volts during operation. If the voltage was a constant 12 volts to the module it would fry the module. The later model CJ's 78 79 that have the resistor wire do not need the resistor pot as that wire cuts the voltage to the module. This is a drawing of how mine is.
1979 Jeep CJ5 with 304 V8, T18 Transmission, Dana 20 Transfer case with TeraLow 3:1 gears, 4.88 axle gears, Detroit Locker up front and Ox Locker in back with 1 piece axle shafts, 36" SuperSwamper SX Tires, Shackle reversal, MileMarker Hydraulic winch, MSD 6A ignition.
You still haven't figured out what that is connected to?
Here is your original thread asking about that resistor: http://www.jeep-cj.com/forums/f7/question-about-electrical-11852/
It is a power resistor. It is often used as a ballast resistor for the ignition but they usually aren't mounted on the firewall like that.
We can't tell you what that power resistor is connected to. You must trace the wire.
83 CJ7 350 tbi, TH350, D300 twin sticked & clocked, narrowed Chief D44 Eaton Elocker & Moser shafts, Explorer 8.8 Detroit locker, 410's, RE 4.5" spring lift 1" body lift, 35" Claws, cage tied to frame, Corbeau baja seats, HD tie rod and draglink, u-bolts flipped, custom skid plate and sliders, Warn 9.5ti winch with Amsteel synthetic line