I have a freshly rebuilt 2 liter that I just got running. After I had it running I was feeling around and noticed that the coil was hot. What could cause this? I am pretty sure the electrical is hooked up right (I hope).

It's going to get hot.............not lukewarm......but hot to the touch.

For fun, close the points, turn on the key and wait....it will explode. Ok, don't do this.

As long as it's normal I won't worry about it. I did have the ignition on without engine running for about 10 minutes while checking lights and such.

If the points were closed you are damn lucky the coil didn't explode........since you didn't ask, I had a VW Camper Van at one time in my life. In order for the dome light to work, the key had to be on. As I was sitting in the back, playing my guitar, I heard a muffled "pop". I got out to see what was up and saw flames from the engine compartment. The coil had become so hot, it had exploded and on the bus, it was aimed directly at the feed line from the tank to the pump.

The Bus burned to the ground right there...I couldn't get the fire out.