The fact that you get spark when you turn the key off is because the points are grounded. When the power is relieved going into the coil the primary field collapses and the spark happens. kind of a reverse of the way it should work.
Be careful of the coil getting too hot while you are testing the system. They can explode.
Thanks for all the help.
Got it fired up and running. I guess you can just file this one under "operator error" .. I'm smaking my forehead on this one. I had the points hooked to the lower cap screw (the one holding the points unit to the block), not the points itself.
But hey ... I bought the tractor as a rolling chasis, engine block, and a box full of parts. Bought it because it was made the year I was born so figured I'd give it a shot. Had to do a ton of research and reading, first engine I've ever rebuilt. Learned a lot. I invested heavily into it. Made a 3 hour trip for a tiller, blade, snow blower, front and rear lift, mule drive, weights, and chains. I'll be putting her to good use and deffently take good care of her. (the wife will figure out I'm hooked) haha
Thanks once again. If you're ever find yourself on southern Wood county Henry county line, let me know, I owe you lunch.