You have the location right. However, using a test light between the neg. lead and the battery may save your meter. If current is flowing out of the battery, the test light will light. The brighter, the more current, (to a point).
Your meter has a max amperage of 10 amps, and the 10 amp side is often unfused. On the other hand, if you use a good test light and have a very strong draw, the most you will do is blow the bulb.
It does sound like a pretty strong draw from your description of the voltage drop. A very high current draw will cause the voltage level to drop, you see this if you have ever watched your volt guage when you start the truck. A starter draws a lot of current.
The only thing I would add to your list of possible culprits, is a short to ground somewhere, but those are the most likely to cause a high current drain. The distributor would probably be the last thing I would check, and the nw relay would be the first.