Hi, Neighbor. The mysterious gray/black wire is not on the diagram and is a source of positive 12V and apparently not related to the problem.
It turned out that a previous owner had made extension wiring from the 4-way flasher switch to its socket, and when I temporarily removed the center console to change the radio, the extensions popped out of the socket, and both the 4-way and the directional died. You're right about the directionals being dependent on the 4-way switch being connected. Apparently the directional circuit depends on some silly voltage flow through the 4-way switch, even when it's turned off.
Marelli and Lucas must have studied electrical engineering together, and got drunk and flunked out together.
Anyway, the '78 now sounds spectacular and flashes just fine.
Weather permitting, would you like to meet for lunch at Danny's on Saturday? It's about time our cars got to meet. Email me at
mnm@ablecomm.com