Pamcos can easily fry if left powered up for extended time - performing non running diagnostics etc. Guys in the xs650 community have Learnt the hard way to switch off the key when not running the engine.
Regarding the coils... Vintagecb750 & cb750supply both look very similar to mikesxs, an xs650 parts supplier who has not got the best reputation for their coil quality.......the pamco is a great product for the $$$, if I was to get another ignition however it would probably be a power arc from cyclex.
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Hotdog, you are right. With any non-intelligent ignition such as points, etc, you should only switch it to 'run' when your about to kick it over (or have the same discipline if you use the key). The pamco may be somewhat immune in a way because the 'set-up' magnet needs to pass the sensor before being 'latched' by the mosfet, in which case you will get current draw through the unit in this instance & also energise one of the the coils. This may happen if the engine is partially cranked, but if's just sitting and hasn't been triggered (say 180 deg crank rotation), then it shouldn't be energising the coils. I'd have to test this for sure but i'm pretty sure this theory should hold.
The cycle-X may have some smarts in there to cater for this, like a safe mode if the motor is not being cranked, in which case you'd never have to worry about frying a coil.
[update] - So to be a bit clearer, if you have a pamco and havn't tried to crank it over yet, but you have both the key & ignition ON/RUN so its ready to start, then you shouldn't burn a coil out.
However.... if you have begun to crank the motor and kept both the key and ignition ON/RUN and left it there not running, then one of your coils can potentially get saturated (burnt out) if the crank stops at a certain angle (specifically if the crank angle is such that the sensor is between both magnets).
Short of it all, keep the ignition OFF unless your ready to ride. If you do this, you should never burn a coil out.