When I first got the bike, the stator somehow had water in it. I was able to clean up the coils and replaced the points. The condensor and the secondary coil test out okay. I think the source coil is within spec as well. I am reading 1-1.2 ohms. When cleaning I took apart the advance mechanism on the flywheel and I am wondering if I didn't put it back correctly. The way it is installed there seems to be no way for it to pivot, but this is the only way I could seem to get the screws in. What am I doing wrong?

I was trying to attach pictures to help, but I guess that's not working right now. The arm of the mechanism is sitting in a slot on the flywheel that is preventing it from pivoting, but that is the only way was able to get the screws in.

Update: I decided to buy a new condenser and relocated to underneath the gas tank. I am able to get spark, but I think the timing is off and I'm not confident that it is strong enough spark. I ordered a dial indicator and am going to get the timing set to spec. Hopefully I can get it started after all that. I am still confused by the timing advance mechanism. Maybe I will post a video on youtube tomorrow and link it here.

Renegade575 I'm unable to help you with your advance/retard mechanism issue as I've never worked on this specific engine.  However as soon as you can post photos of what you have do so far there will be many very knowledgeable forum members who can help you sort it.  My reason for replying is to highlight the importance of taking disassembly photos as you strip a bike/engine. (Ask me how I know this.. ).  What might seem a relatively simple task at the time can easily become a real headache and memory test to the brain after a break of only two or three months.  Anyway there'll be some good folk chime in soon to help you out

Yes, photos are so important! Almost 2 years have passed between when I disassembled everything and now. I took a lot of pictures and referred to them constantly during reassembly. I just don't have a picture of the inside of the flywheel :( 

Here are the pictures I was trying to post earlier. I have been able to get spark, but I cannot get the timing set properly. I have tried setting it using the procedure in the Clymer manual and I cannot get it to fire at the spec'ed 1.8mm BTDC. I think it is actually firing ATDC.

Timing is set with mechanism fully advanced...  move lever in direction of arrow and put pin through holes I marked with dots which should align when lever is moved.

When lever is moved, points cam in center should rotate in direction of arrow.

 

Thanks for the reply Mark. The points cam is seized up. I was just trying to pry the lever with a screw driver and the lever cracked. I went ahead and just bit the bullet and bought another flywheel on ebay. It looks to be in better condition than mine and it says the lever moves freely.

Yes, lever should move really easy...  timing is full advance at about idle speed.  It's just used to ease starting a little bit.

I've locked cam at full advance on ones with messed up linkage and they run fine.