I use a 6 volt light bulb with wires soldered to it on my DT. I hook one end to the battery positive and one end to the black lead from the points. The light gets dimmer or brighter when the points open and close

Am I missing something, or did you say you had the ignition key turned off while trying to measure the resistance? Did you have the black wire from the magneto still connected to the harness or disconnected? If still connected, the switch will ground out the points and you will not see any change. With the points wire disconnected, you should see the difference between the points closed (0 ohms) and points open (1-2 ohms, the normal resistance of the source coil) If you still can't see any change, you have a short in the circuit somewhere.
alnarv

Very good point ALNARV!!

If your hearing knocking chances are something inside is going out. Could be a bearing, top end, maybe something loose? Hard to tell from this side of the screen. As for timing i have never timed any of my bikes using the recommended process as stated in the service manual. I simply get the piston at TDC which is where the points open the furthest and then gap them between .012-.016 (dont go over 16 trust me). My 73 RT360 is currently at 15 and the spark on the plug sounds like a fire cracker going off lol.

Thanks for the responses, I guess I just needed someone to tell me what I already kind of knew lol. I have everything properly spaced out now I think, did not know about the timing tab behind the flywheel since the clymer manual didn't say anything about it lol, huge help. In the process of getting a 6v bulb soldered together for a timing light to make sure.

I did still have the black points wire plugged into the rest of the harness lol, mutltimeter still wasnt giving me anything useful with it unplugged but im sure the timing light will work now. Thanks again 

Get a cheap continunity tester, undo the black wires from the stator, hook the tester up to them, when the light blinks the points are just opening.