Finally got the ignition system completely rebuilt. I ended up setting the points then fine tuned the timing with my multimeter. First crank and she fired right up!! Let her run a good while and she ran and sounded great! Now for the new problem. When I had gone previously to change the lower unit oil, nothing came out, just a small dose of water. So I flushed the lower unit out and put in fresh oil. This is the first time I've run the engine and actually engaged forward and reverse gears. She performed as she should in gear. After shutting engine off noticed water had gotten into the lower unit when I removed the drain plug to check it. Also some of this oil/water mix was coming out of one of the water drain holes further up the engine casing. Any advice on this would be appreciated. Was wishful thinking that this wouldn't happen but I had a feeling.