Well here's a good one and a lesson for me.
Turns out the problem all along was the screw that mounts the condenser didn't make a good electrical contact.
I didn't get a new condenser but I tried another one and it still wouldn't run right but I saw sparks where it mounted to the engine, tightened the screw and it smoothed right out.
All along I noticed that the points were arcing (sparking alot) when the condenser is working properly there are minimal sparks across the points.
So I think I had 2 problems, bad coil and a condenser that was not grounded right.