Just to clarify…..

The nut holding the flywheel on is regular right hand thread. 

The flywheel puller that screws into the flywheel is reverse or LEFT hand threads. 

Rattle gun? Air or electric?

I was able to get away with an electric on my CT2. Works pretty well for most things actually, they have come a long ways in the last few years.

The correct flywheel puller is a must. As for the nut i just use an electric impact gun and hold the flywheel with my hand after soaking it with some penetrating oil. Those points look absolutely disgusting! if it was me i would replace them. Your coil looks like a cheapy which might give you trouble but for now id focus on cleaning up the flywheel, stator and points.

Thanks for the advice, with a flywheel holder and puller it came off easily! As was expected, everything was corroded as hell. So far, I’ve done my best to clean all surfaces but there is major damage to the flywheel ‘cam shaft’ and condenser. After vigorously cleaning the shaft (haha), I’ve noticed some serious pitting. Seems like this pitting will make quick work on the points/cam contact thing (don’t know the term). I’ve not been able to find a new replacement flywheel in my budget so I’m gonna stick with it for now. Are there any tech tips of filling these pits or just replace the points when they wear out? On that note, I’m looking for new points and condenser. Any suggestions? I found this condenser on eBay that I’ll get unless there’s a better option. Does anyone have a good source for replacement points? Also, is this a cam cleaner and is it necessary? It looks pretty screwed and doubt it’s worth the effort to put back in. Thoughts? 
As always, thanks for your help! 

Here is the condenser I was gonna pick up.
and yeah, the coil was probably bad pick, I was a bottle of wine in and just bought the first cheap piece of crap that said it would fit… C’est la vie… 

Lately i've started spinning my motors--100 & up to 360--with a drill & socket on the mag crank nut. Don't know why i never thought of it before. My drill does left hand --reverse-- & is a quite a grunty drill with speed/torque adjustment. So handy to just sit there & spin it up rather than kick kick. On the 360 i took both plug & blank off out to make it easier. Little 100 i started it up like that with the drill for bench testing & playing around. Had to be careful though as the torque just about screwed it out of my hand the first time on the 360 so was a two hand job.

Just a note on what you referred to as the "cam cleaner" It I believe is a cam oiler, it is a felt like material that is to be soaked in oil but not dripping, so the points have lubrication in place at all times, well as long as there is oil in the felt.