H4 mag grounding out

My H has been giving me trouble lately. It would start and run great until it got warm then it would sputter and die. Usually it would start and run again for few minutes before it would die again. Finally it died and wouldn't start. I discovered no spark so I pulled the magneto off. I put in new points, condenser and coil. Before putting it all back together I wanted to verify with an ohm meter that the points are opening and closing. I have found with the points open the point that rides on the shaft is still grounded to the case. I pulled it out of the case and left the condenser wire attached, still grounded. So i figured the condenser wire was probably rubbing the case so I replaced it and soldered new ends on it, still grounded. I removed the condenser but left the the condenser wire and the coil wire touching, it still grounded. If I pull the 2 wires apart it is NOT grounded. I'm stumped at this point. The coil is new and the insulators are in place and in great shape. Could something be wrong with the new coil? Any other ideas? Thanks
 

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