Well they should sit flat, no daylight through them like that but if they're contacting I don't think that's the cause. Your ohms meter will soon tell you if they're contacting when closed as you have them off the stator plate. In saying that I'd replace them anyway to get a good looking closed look.

Agreed. I ordered a supposedly OEM Daiichi set of points as a replacement. We'll see.

Ok. From my last photo, you can tell I've taken the points with the gap off of the stator. I "tested" it like this, if I understand everyone on how to do these things (I'm not exactly a mechanical genius): with an analog multimeter (GB Instruments GMT-318) I zeroed the multimeter out first, then with the points closed (touching each other) I touched the red test lead to the nut where the blue wire attaches from the condenser. Then I touched the black test lead to the body of the points (this is grounding, I guess?). This gave me a reading on the needle of just under 1. I then zeroed out the multimeter again and put a folded business card in between the points area that has that gap. I touched the leads to the same spots again, but this time the needle doesn't move at all. Or should I be using a digital multimeter? If so, I have one of those, too.

You didn't mention what scale you selected on the meter...  Rx1?

Anyway, you should be getting the exact same reading with points closed as you do with probes touching each other, if you zeroed meter, then meter should swing all the way over and read zero with points closed (one probe where wire connects and other to points body/bracket that gets screwed to stator as you described) 

The fact that you are not getting a perfect "zero" reading means points are not making good contact when closed.  This is the #1 cause for no spark in my experience.

With points blocked open as you described...  and ONLY when you don't have them installed with wire to condenser/stator coil attached...  you should see no reading on the meter as you have an open circuit. 

When points are installed on stator and wired correctly, then with points OPEN you'll see about 1 to 2 ohms using Rx1 scale and with points closed, needle should swing all the way to zero.

My bad. Yes, I selected Rx 1. Great instructions, Mark. Thanks. Can't wait to test all this on the new points when they come in. I just really don't want to have to take the cyclinder head off again and do all that TDC stuff I already did.

The New Daiichi points came in. I tested them both ways like you described above, Mark. They passed. So, at least I know the old points were no good. The bad thing is, even with the new Daiichi points installed, I still get no spark. Could it be I have a bad condenser, too? Is there a way to test it? Or does anyone think I need to wire that lighting coil back the way it was at the beginning of this post?

With the new points installed on the stator, exactly what are your meter readings with points closed and points open?

Points closed: zero. Points open: slightly more than one.

Might be a little low with points open for a CT2 which I remember being closer to 2 ohms but I'm not sure that's critical.  Also not sure what you did with the lighting coil?  I remember you soldered a wire to ground early on but don't remember anything about lighting coil and a quick look didn't find it.

If you run out of ideas & want one more thing to try, test the AC output from lighting green to be sure you have 'something'.
Then tuck it into the black anywhere say up top at the plug coil is easy from the top end of the mag loom.
Then snip the source col wire at condenser--or unsolder it--then give it a kick, or spin it anti clock with a drill like i have.
You should have spark.
If it sparks then that proves the source coil has--run out of source!!.
Could try starting it briefly just to see.
Might misfire & give the points a brief hard time if over voltage, just don't rev it hard out, but should run.
Faulty condenser 'to my way of thinking' will still spark [bright useless flash] but not under compression.
Got a feeling i've said this before so hope not on this post.
Getting old & keep repeating myself.
Somewhere on the site i did tests [test of a sort] on my 175 kicking & running.
Not sure how to find that now but might only confuse the post.
We want some good news as do you i'm sure.

Ok i looked back a page & i sort of said this before sorry, well not as detailed maybe.