Shine, I mean shine the point faces and try again.....
Thanks, but given that I'm getting power at the points does that even matter at this point (no pun intended)?
In case you don't know about points: here's how they points work:
They get [about] 12 volts thru the coils when they are open, and when they close, the current charges the coils. The Black/White wire feeds the "high" side of the coil(s), and the Blue (1-4) and Yellow (2-3) wires go to the points to get switched ON/OFF by the crankshaft. They essentially ground out the [blue or yellow] wire on the "low", or "switched" side of the coils, when closed. This charges the coil.
When the points open, the coil's magnetic field (which was built up by the current passing thru it) collapses, making the spark. If the points can't ground very well, this makes for poor (or no) spark, because the coil won't charge.
So, with the same meter you've been using: connect it with one side to the engine block, and the other to the Blue (1-4 coil) or Yellow (2-3) wire at the points, and see if it switches between 12-ish volts and ground (0 volts) when open or closed, respectively.
If it does, then the coil will make some sort of spark. If it does not switch to 0 volts, the points are not conducting, and need to be polished up good to make them work. That's the job of the points file.
Now...there are a few things that might not let the points ground. Two of those things are:
1. The bike's GREEN ground wire is not [properly] grounded to the frame. On the K3, it will be grounded in either: the seat latch bracket, under the seat, or: the front coil bracket, up under the gas tank. The K3 came both ways. If this Green wire is not grounded, it is real difficult to make spark.
2. The big, Black battery ground wire from the battery's (-) terminal must be connected directly to the engine. On the K3, this normally would be on the left top rear engine mount, in between the frame and engine bolster. If this is missing, again it is difficult to make a spark, since there is no ground for the sparkplugs.
Your friend is right: a double-coil failure at once would be one for the books!
You can check the coils, though, if you can figure out how to measure ohms (resistance) with your meter. If you figure that out, write back and someone will walk you thru it. The primary side of those coils should be about 4.6 ohms, the secondary (spark) side, with the plug caps removed, should be a few thousand ohms, tops.