Hey guys, thanks very much for your replies and info.
I should have used a newer picture because since I had taken this I had replaced the points and condensers.
Xnavy- I tried the order you suggested and no change. In your list you have the spring touching the attach ear and when I tried that I got no voltage at all through a rotation of the crank.
I have looked on the site for the proper order but found it hard to find. My order is now as what I saw on bjbuchanan's link(really helpful btw): Bolt-condenser-metal washer-spring-fibre washer-attach ear-fiber washer-metal washer-points wire-small metal washer-nut.
These points are two months old.
I think Spanner nailed it. Since I got the bike last year I've thought I've had big sparking at the points, especially when I put on new condensers. Big blue spark. When I read that some sparking is normal, I thought perhaps that was ok. But the new points get pitted pretty quickly, to my uninformed eye.
So if the wire order is right(?), what else could cause big sparking and the short sound coming from near the coils? As I've tried to figure this stuff out, I've checked the coils and they tested within .1 of 5ohms. I've tested the connections to the coils and cleaned them.
It also keeps fouling plugs, dry black colour. I've tried leaning it out but it doesn't change anything. Maybe because of whatever the electrical problem is, the spark at the plugs isn't hot enough? Again, thanks for taking the time guys.