Thank you for the responses. I will do an compression test to get the numbers to see how far apart the cylinders are, and then pull the head for a look at the gasket. If both cylinder’s condition look promising, I will pull the flywheel to check and test the magneto parts and then decide what to do repair or part out.

Today I did a compression test. Top cylinder 35lbs Bottom 65lbs. I then removed the cylinder head to inspect. Cylinder walls are ok and the head is ok. The gasket looks to be the problem. On the bottom cylinder an area of the gasket looks to have been letting water into the cylinder and on the top it looks like it was compression leaking past the fire ring of the gasket. I fixed a problem of the throttle plate not opening very far, by adjusting the throttle shaft lever position to have WOT. And retested for spark. No spark, so next I will pull the flywheel tomorrow to check over the magneto.

I retested for spark,and got spark on the top cylinder only. Next I pulled the flywheel and the mag plate assm.(fun job on this motor) for testing on the work bench. Coils appear new (China Zhongfad #512154) and have been rubbing on the flywheel. They were not adjusted for proper clearances. Condensers also appear new. Points are used.I used the Merc O Tronic to test, coils ok, points ok, condensers ok. I found plug wire spike connector on the end of the bottom cyl . to be rusted. Clipped off 1/4 inch of the wire and buffed the rust off and reinstalled the spike and plug boot. Then reassembled the mag. and intalled mag. and flywheel. adjusted coil air gap. Checked point gap and reset bottom cyl. points had only .010 , set to .020 . Retested for spark and have spark now on both cyls.