I have never seen a US version of the Torrot bikes, so no 'blue wire' to worry about grounding out to allow the coil to spark. Two condensers on these bikes, one in the points the other on the ignition coil. The one on the coil is supposed to be for RF noise suppression not spark quality. I would suggest to worry about the ignition first before the variator if you need/want the bike to be running.
Clean the ignition points with small file and chase off any guck with brake cleaner (NOT abrasive paper and carb cleaner as either will leave shyte behind that will mess with the contact) set the gap at 0,4mm at index and set timing to 1,5-2,0mm BTDC. If no joy then disconnect the points and make sure of continuity when closed and open circuit when open. Check the condenser that is loads and unloads. Check the internal ignition coil, should be 1-2ohm. If still no joy after all of that is correct then check the external coil which is all the heck the way up above the seat post tool box. 2000-4500ohm for secondary to primary depends on which coil they have up there, 1-2ohm for the primary to primary. Make sure you dont have a resistor plug and resistor cap, you need either or none but not both.
Posts above have the opening of the clutch pretty well covered...