Timing issues? Won't stay running...

Anthony Hendrickson /
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Specs:

82 Maxi: Gila 74cc, Dellorto phbl 24mm, Homoet 6p pipe, treats za cdi.

Okay, so I just flipped the ignition coil on the stator and the spark is great. I've got the pickup between 4-5 o'clock. With the pipe off, I was trying to get her to run (and it started to go for 5 seconds), but I noticed that I could see the light of the spark on flashing beneath me (out of the exhaust manifold reflecting off the ground - night obviously).

Just out of common sense I feel like I shouldn't be able to see the spark.. I'm assuming that is because if I am seeing a spark from out of the exhaust, it must be way retarded.. Can someone concur? Also, is this why the damn bike won't keep running?

How close does the timing need to be to keep it running?

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