It is a new ignition module and the points were no good. That's why I chucked them to start with. I might change the location of the module though. It might get too hot mounted where the points originally were under the fly wheel under the fly wheel.
Yep, o-rings are cheap, and doing that eliminates any present or potential trouble in that area. After all, that engine is at least 32 years old...
And yes, those solid state ignition modules don't like excessive heat - mount it on the outside of the cooling cowl, as Victa did, for that exact reason.
