The points cam looks much better. And no, I wasn't kidding when I was trying to convey that rust pits will ruin points quickly. 
Nice job sorting through the possibilities. Hopefully you've got it now. And good call by Tom (@ancientdad)!I checked the points gap today and the left gap is almost non-existent. Right one is still in spec. I didn’t even bother checking how far off the timing was, I could see the heel of the left point was worn down and smeared on the lobe.
The cam chain may need adjustment.So far so good! Was able to (barely) set the timing even with the worn points. Rode it around two different times! There is some strange noise when I ride like perhaps a clicking or tapping, sounds like it’s coming from inside the engine somewhere and it’s completely random. That’s probably a problem for another post haha.
I should recheck the valve clearance probably, I need to look up if the timing should be set again after that… I know there’s a specific order to do them in.
Thank you everyone for your help, I feel sort of dumb for not realizing I was just sanding down my points. Got there in the end…![]()
Good that you got it repaired and glad it's running well again, but it's too bad you didn't come back to share the progress with us along the way.Hi all! I was still having issues so I had to go deeper.
Anyone in the future reading this thread may want to know the conclusion so here it is. It was the cam chain! The tensioner rubber was totally shredded, and the chain was loose and flopping around in there. Even wore some grooves into the engine block from rubbing. Not sure if it was skipping teeth, I know there was some debate on if it were possible, but it was certainly causing the timing issues.
I replaced the whole chain (had to punch out a link with the tiniest chain breaker i could find and it was a horrible job) and then checked over the top end, cleaned up the pistons replaced the whole tensioner and all the gaskets etc. Put it back together and set the valves and timing and she’s been running consistently for over a month now. Kicks up first try, both cylinders firing.
I put that engine block back in by myself (with the help of a longboard for transport, a jack and some wood blocks).![]()
I’m glad too! I did make a different post about some inner engine questions I had during the process but to be honest the updates would have been boring as it was a lot of scraping gaskets hahaGood that you got it repaired and glad it's running well again, but it's too bad you didn't come back to share the progress with us along the way.![]()