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CHUCK
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    I find that the CDI troubleshooting guide in conjunction with the specs published in the Mercury shop manual helps me a lot.

    Yours is the green stator?  Mercury #336-3996A7?  If so;  according to the CDI troubleshooting guide that I attached….that the test you are making with tapping the coils to ground….seems to point to an issue with the Maker Points, the insulation block or the associated wiring?

    I hope so….because as I’m sure you have discovered….those stators do not come cheap.

    Do you have the Mercury Manual with the Specs for all the components?  Some of the tests require a DVA Meter.