Thought I would add a few comments to assist.
You mentioned earlier you replaced the points. From your photo I am pretty sure you mean the electronic ignition module. To date I have not found a failed full crank magneto fail, only the modules fail. Most of the time they can be re-riveted to the engine block and that fixes the spark issue. Please correct me if I am wrong.
A couple of items to check:
1) Try replacing the primer cap with a genuine Victa Primer Cap. Don�t waste your time with the aftermarket copies as most a rubbish. This is one of the only parts I use genuine because of the problems associated with many copy brands.
2) Check the primer cap needle and make sure the point that seals into the cap has not been damaged/ rounded in any way as this will cause flooding.
3) Replace the decompressor with a spark plug. I have had a few decompressors that gave the symptoms you indicated and simply replacing the units gave a one pull start. A properly tuned full crank engine should start first pull just about all the time. You can try the air test on the decompressor which is detailed within other threads. When I suspect they are faulty I�ll always find a second hand spare one to be sure.
Keep working your way through the diagnostic process and you will work the kinks. These are great first time engines to start learning on.
