For TIG, you really need to grind off all that mill scale until you have bright metal. Wire wheeling won't usually remove it. That scale will plate your tungsten with a lot of contamination. The points are only for the HF start and won't have any change in welding amps or the display. The points gap is around .030". If you want to check them, call support for a walkthrough in how to access them. However, you can also switch to lift arc start and try that. If you are still having problems, it's not the points. I suspect that most of your issues is from that mill scale. It can act as an insulator both where you are welding and where the ground clamp is. Can't see where you have postflow, but make sure it is about 10 seconds or so. The rest of the green knobs can be set to minimum settings for use with the pedal.
Long arc, short arc, heliarc and in-the-dark!