My previous question was to try to undertstand the difference between "changing the timing" which killed the spark and "rotating the points plate" which changes the timing.
Let me describe what I think you are doing and if I am wrong, ignore the rest of this post.
I am assuming that your points cam is part of that flywheel and that it is not keyed to the crank shaft, consequently, you can set the timing anywhere you want, even so far off that the magnets are mis-aligned causing no spark and a timing mark on the flywheel would be about as usefull as tits on a bull..
Assuming this is true, first rotate the points plate to the center of it's travel, then set the points gap, then rotate the engine to 1 - 1.5mm before top dead center. Install the flywheel so that the points are just opening. Re-check the timing and use the points plate adjustment to get the points to open at 1 - 1.5mm btdc.
Now, if you have a good fat spark and your ped still does not run, look for a problem other than ignition.
If you suspect your condensor, you only have one and it is connected from the coil side of the points to ground. If you read it with a vom on the highest resistance range, it should kick slightly if you reverse the lead polarity then settle to completely open. If you want to substitute another condensor as a test, you can use almost any lwan mower or motorcycle condensor. Disconnect the old one and connect the test cap between the points terminal on the coil and engine ground, this will avoid finding space under the flywheel.