I was checking the point gap and static timing with a ohm meter. Even with the points closed I had infinite resistance on one set of the points, but not on the other. So I wondered if the surface of the points was contaminated and not allowing conduction. I filed them and still had an intermittent conduction between the points. So with the points open I put a small screwdriver between them and got conduction. During this whole test period I was able to compare the results against the other set of points, which were operating normally. So I knew there was an issue with one set of points. And trying to start the bike was an exercise in frustration!
I had good luck with the charlies place electronic ignition on my CL175, so I installed it on the 550. I set the timing statically after installation, then set it dynamically after I got the bike started. It now starts first kick and runs well.
There must have been something going on with the points-- a small internal fracture or something. When they got warm the problem resolved, explaining the fact that after the bike warmed up it was easy to restart. My guess is they were original points, so after 10,000 miles they must have clapped together about a billion times.