Re: Points
Well, Noah, your manual is incorrect. ALL Chrysler 2 cylinder engines have the points gapped to .020 at the high point of the cam or the (line or arrow) if there is one. Not the directional arrow that shows which way the cam slides onto the crank.
(3 cylinders are gapped to.014 and 4 cylinders are gapped to .010.)
Work slowly and carefully when gapping the points since a difference of only .0015 is one degree difference in timing between cylinders. Gapping is more critical on magneto ignition engines since incorrect gapping will not allow the magneto to build up sufficient primary voltage to reliably fire the spark plugs. On a points and coil battery ignition 2 cylinder engine, since it has only two cylinders, point gap is not as critical because there is plenty of dwell time to build up a sufficient magnetic field in the coils.
Gap one set of points at the high point of the cam then rotate the engine 180 degrees and gap the other set. Then, double check your work. Be fussy and a perfectionist here. Lightly lubricate the felt cam wiper pads. Not there? Get a couple. Do not put too much lubricant on the felt wiper pads as it will come off and foul the points. While you have the flywheel off, try to move the points carrier plate from side to side. Any play here will affect point timing and engine running. It should move silk smooth with no play.
The points will normally be closed when not on the high area of the cam. This allows current to flow through the windings of the magneto or coils and build up a magnetic field. When the points open, the field rapidly collapses through the secondary windings and a high voltage pulse is generated. This pulse jumps the spark plug gap. The condenser controls the surge of primary voltage and helps to prevent sparking at the points as they open and close.
BTW: The magneto is an AC generator and I have greatly simplified the explanation of the working.
To start the engine you first prime the carb by pumping the fuel bulb in the line to fill the carb. Now, pull out the silver or chrome knob or lever on the side of the control box (about 1/4 inch). This disables the shift. You push the control lever as far forward as it will now go. Turn the key to start while pushing in to choke the engine. Aftsr the engine starts and warms up, return the control lever to neutral (idle) and push in the knob. Shift and throttle will now work properly. After the first start, it is no longer necessary to prime the carb and you may be able to start in neutral with the control lever in the idle position--varies from engine to engine.