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I was on a trip and was not able to look into it, but now that I am back I am guessing that the issue lies in the coils and/or condensers because the spark was very weak with brand new J8C spark plugs (I know that may not be right, but I just needed to check for spark in a hurry). Being that it can best be described as a “Frankenstein motor”, and I did not pay much for it, I think I will let it go and get a better example of a KG-7 that will give me less trouble. I find the KE-7 lineage of motors to be very interesting, so I doubt that I will give up on the whole Mercury brand for a while.
"Outboards seem to multiply exponentially..........I find that for every finished project, there are two more waiting to be completed."