The Ignition Condenser works in conjunction with the points and installs on the side the distributor. The condenser hooks up to the negative ( - or 1) side of the coil as well as the points (inside the distributor).
The 02069 Condenser is a replacement for the 02007 condenser and was originally used when the VW had air conditioning so it has a roughly 6" longer wire to the coil.
Bosch Part Number 02069