Does this MSD Rotor/Cap/Pickup look okay?

[Dirty Harry]

I had a misfire problem that I was struggling to diagnose. As it turns out, the metal base on my big oval air cleaner had rubbed on one of the wire boots on the distributor cap to the degree that that wire was shorting to ground. The underside of the air cleaner base had a burn mark from where the spark had arced. That's not something you might normally think of, so I pass this on to, hopefully, save someone the difficult diagnostic path I had to take.

[Gaz64]

The rust on the pickup is the microscopic wear dust at the weight pivots. You can see it sprays out inside the bottom of the rotor.
There is a magnet as part of the magnetic pickup, hence the name. Guess where the dust ends up.
Clean it up as you feel, but LUBRICATE the weights with lithium, or a medium weight high melting point grease.
Your cap looks fine, clean it up with a wd40 soaked cloth. Sanding etc only creates larger air gaps.
MSD believes no lubrication other than their dry film is necessary. The rust does not occur if the weights are lubricated in the normal manner.
The same phenomenon occurs at a dry door hinge.