The SOHC/4 World Tour is in under way.
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Problem is, the light stays on when the points close. I turn the engine 360-degrees and the test light never goes off. I loosened the backing plate and rotated it, but the light stayed on. Either the points aren't closing all the way
And, yes, I know the points are open in that photo. I even took the 1-4 point off the bike (and it closed by itself, obviously), kept it hooked up, and the light still stayed on.
Checking/adjusting the breakerpoints should proceed the timing... Do you know how to do it? Also in the picture I noticed that the center bolt that secures the 23mm nut is not in the centre. Could this mean your advancer cam is a bit wobbly? Use a 10 mm spanner, undo the bolt a few turns and then tighten it, making sure it's right in the middel of that 23mm nut.
Looking at your initial photo. On the 2-3 points plate, it looks to me like the black wire terminal plate (where it attaches to the stud on the points, is bent over. If that is grounded, you have a problem! Blow any fuses?