Trying to help a friend with his tiller, Kohler Mod K161T, s/n 13080351, spec 281295. He replaced the points, coil & spark plug. Not getting any spark! First-how do you set the air gap between the coil & flywheel? Second-looks like the flywheel magnet attachment has been coming in contact with armature. Lots of small chips of metal, can't determine what it is hitting. No noticeable contact when spinning the flywheel now. Have cleaned the chips & tightened the grounding screw. Appears spark plug wire just slips into a bayonet on side of coil. What to check next?
 
If the wire from the coil to the points goes through any metal retainers, try a new wire from the coil to the points. If its on a Troybilt or something that has safety switches, disconnect them while diagnosing your spark problem. Another thing to try is disconnect the stop switch wire. (Be aware!-you may have to disconnect the sparkplug wire to stop it if you are successful in getting it to start!)

You also didn't mention changing the condenser-you may want to try a known-good condenser.
 

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