With a 1994 model you probably have points ignition so I'd look into that. The square box with the three terminals is the voltage regulator, the round can is the turn signal flasher. The light circuit is independent from the ignition circuit so the lights coming on when cranking don't really mean anything. Pull the flywheel cover and look through the windows in the flywheel. You should see the points opening and closing, the contact surface should be clean and flat.