Sorry i dont have a picture (yet) but i dont know the correct name for this. on a std 1200 above where the coil is mounted there is a little white creamic box with two wires connected to each end.
What is this thing? and whats the best thing to do? remove? modify, or relocate.

Any help would be great

Im thinking ballast resistor

Yep, Balast resistor and if you still have your old points ignition you have to keep it. You can relocate it fairly simply but.

Why do any of those things? If it's not in the way, not broken, & it still works, & you don't mention that it's any of these things, then just leave it.

Hmmm. You pose a good question dodgeman.

But i will answer your question with another.

Why have an ugly ceramic looking little box in your engine bay if it's not required or could be located elswhere???

Trav

It is required unless you have an ignition coil with a built in ballast resistor such as a Bosch GT40.

Correct

You will most definately need it.
If wanted, relocate, however be extremely careful, as these become quite brittle over the years and crack easily.
Just makes sure where its relocated, that heat doesnt affect it alot.

Jus my 2 cents worth

Well Dodgeman the topic is called stupid question and i know what you mean, but because its old and fragile is what im THINKING of what to do with this thing. if i can modify this or remove it to benifit the way my motor runs then im interested.
so all these nice datto's i see have them just hidden??
Would an electronic dizzy also do the trick. Or is it only ignition? im confused on what it exactly does.??

Ballast restistor reduces the voltage running through the points to stop them burning out.