hesitating 2.1

As we discussed on the list, I am trying to resolve the hesitation in our 2.1. Currently following two leads, Zoltan recommended to clean the distributor cap, Ken questioned my AFM. The distributor cap I just cleaned, but the arm looks kind of fried to my untrained eyes (see pic) in the other picture you can see that the upper right contact in the cap misses the little insulation bit on top... I guess I hould exchange arm and cap?