i wouldn't worry about air gap, ive had those coils perform great.
you can test your system dry with a setup something like this:
are you certain your points are opening and closing?
you are right that the timing relative to crank position is basically irrelevant, but those new points can sometimes be finicky.
make sure that nothing in the low tension wiring is grounding out.
make sure you have continuity everywhere in your high voltage side - point to point - and how are you looking for spark - holding the plug against the head? pedaling? drill? spinning by hand?
200 ohm setting is gonna be high to test primary coil resistance - probably not sensitive enough to pick it up .5 - 1.5 ohm depends on the meter. start at lowest setting possible.
run a b6hs or b7hs, dont run a bp.
if you are pulling your hair out, stick it in a box and mail it over to me and ill get it sorted for ya.