I'm replacing my points and condenser whilst the flywheel is off. ( Manage to shear the woodruff key, new bits coming Tuesday). Anyway, I thought I would do a practice session on the timing, but cannot get the points to open circuit when attached to the stator plate. Should there be an insulating washer between the stator plate and the points assembly?

No


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If ya using an old style ohms meter -not digital--there's only a very minute but visible movement of the needle between open & closed on the lowest scale so watch it closely & only talking a whisker of flywheel movement past & back over the open-closed moment. Don't forget--do that flywheel up tight. I admit i over-do mine but never had a problem. Gotta be held solid with the tool to get a good feel.