I did some work on the motor a few weeks ago and figured I would share. Since getting the motor freed up I wanted to do a compression test to see what the overall health of the engine was. Since my motor is manual start only I knew pulling it would not give good results. My solution was chucking up a 15/16 socket to my 1/2 drill with a few adapters. Results were good expect number 2, all 135 PSI, 58 PSI in number 2, oops!
I pulled off the transfer ports for the top two cylinders and found the problem. The first two piston rings were stuck, no spring action. The third ring was free. I placed that cylinder on TDC and filled it with my favorite penetrating oil. Reassembled the engine and left it sit.
I noticed I had no spark when turning the engine over. I pulled the mag and found the points clouded over. I cleaned them up and regapped them. I used a drill again to turn over just the mag and tested for spark, it was good, but not great. I think a proper cleaning and new condenser would correct the problem.
I however, had another idea. I have some spare ignition driver set ups for my 500 models and wanted to try it on this engine. I attached everything, but I don't think the large horseshoe coil would fit under the wrap with the switchbox. I believe the newer coil would fit great. I put the motor in the test tank and it fired right up. Fuel pump worked and the carbs performed great. The water pump was a bit weak. After running it awhile I pulled the transfer ports again and found my two sticking rings were unstuck. This engine still has the lead seal and I believe its a good one!
Watch it run