Thanks Norm and Tyler, I was thinking electronic ignition would be the way to go as well. Could be $20.00 well spent and if it does not work on this one it will on the next.
I thought that even if it was way out of time if the points and coil are working I would still get a spark. but in hindsight possibly not
I have attached a photo of what I am using for timing, the mark on the flywheel looks kind off factory but unfortunately the ones on the magneto housing look a little coal chisel after the fact. It does not help that there are several. I am lining the arrow on the flywheel up with the largest mark at TDC. This would be easy to check if I knew where the magnet on the flywheel should be when the motor is at TDC. There is a post from A Paul_C about timing back in 2015, but no photos, maybe he could have a look at it.
This motor seems to be a little different to ones I have encountered in the past as the points are open most of the time and only close for a short time. There is a flat spot on the cam instead of a lump? Alternatively knowing when the points will open or close in relation to TDC would help.
Tyler you mention a condenser, is it possible that there is a miniature one hidden in behind the points? There is not enough room in there for any condenser I have ever seen before but there is a spare wire that comes off from points (like you would expect to go to a condenser) and goes behind or into the magneto housing.
I have done a few readings with my $2.00 multi meter. No point in getting overcapitalised as I have no idea what I am doing with it. With the meter set on 2000k measuring from the spark plug lead to the coil (part with the red line) you get a reading of 4.7 Measuring from the spark plug lead to the points (green dot) with the points closed the same reading of 4.7 with the points open a reading of 1. Testing from the green dot to earth with the points closed a reading of 0. With the points open a reading of 1
As I said I don't know what I am doing here, but I think that suggests that the coil is OK and the points are wired correctly.
I think the most likely explanation is a rookie mistake I just have not realised it yet.
Thanks to all for your help so far.
If I can get a large enough hammer it will run for awhile just trying to get away from me