Sorry for the delayed reply here. I have a 3 week old over here and my time to work on the bike has been monopolized.
Here's the kit I bought to replace the condensers and points.
LINK:
https://4into1.com/ignition-tune-up-kit-honda-cb500-cb550-cb750/They were a generic aftermarket set. I'm going to get a set from David Silver Spares to replace these.
I think there were a couple things happening here..
1. One of the condensers was definitely bad. I had sparks flying all over the place on one of the points. I switched the condenser over to the other set of points and that problem followed.
2. The points were poorly made and were shorting out on the bolt attached to the cam lobe. I had to bend the edge of the points to keep it from shorting out.
3. I'm still experiencing a bit of additional spark emanating out of the top of the points on one set, but the other looks good.
4. I do think I need to set the timing with a strobe light. When I set the timing before it was mainly by setting the gap with a feeler and eyeballing the timing using the marks and the lobe. The bike runs pretty well overall, but I'm sure it would run much better with the precision of the strobe light.
I'm going to go ahead and check the nut and fork connecters on each points set to be sure they aren't shorting. I'll be sure to check that those rings are there and placed correctly.
I'll also check the connections on the coils to be sure.
On an (sort of) unrelated note, should i change caps on my plug wires? I'm pretty sure they're original. The bike has 16k on it. I haven't noticed any sparks jumping to the head when I run it with the lights off in the garage. I was curious as to whether I should change them out proactively and which ones I should look for.
Thanks everyone for your help.