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Just my thoughts. I am sure you are familiar with the OMC timing tool to set the points on Johnson /Evinrude engines. And I am sure you know the timing tool sets the points when they are supposed to break in relation to piston position for optimum efficiency of the engine regardless of point opening gap. So following that reasoning you say you have two options for setting the points on your engine that result in a good spark. I would suggest you set the points with each of your procedures and then using your analog ohmmeter with the magneto advance in the idle position determine when the points induces the magneto to create a spark in relation to piston position. I would think the correct procedure would be the one where spark would occur when the piston is at top dead center or a few degrees before.