When you say steel section of the flywheel, are you referring to the counter weight? I'm actually loosening the coil pack and then placing the flexible feeler in between the magnet and coil, then tightening while the feeler is in place. I then slide it out and re-check the gap. I think the anti seize was causing it to slip, I'll test it again when I get home tonight.
I have checked the spark and it is a nice bright blue spark, so I think I am setting the gap correctly.
Regarding the engine, I was told it was running, however it didn't start when I picked it up. Someone had cracked the plastic on the carb body where the plastic cover clips on, and there was an air leak. I did get it started for 30 seconds however it would run lean and cut out. So I replaced the carb body and now I'm trying to run it again.
It did start on the weekend, but once it ran out of fuel, I couldn't get it going again.
