Motorcycle Repair: honda z50r 1986, stator plate, wiring loom

Question
Hi, my problem is a honda z50r 86 with no spark.i have renewed the condenser and points.the kill switch is broken so i have left it open and now unplugged from the stator wiring.the ignition coil seems to test out for continuity,that part is also unplugged from the stator wiring.
what i can't understand is that when tested to ground everything in the generating area points,magneto and condenser are grounded.all this equipment sits on a circular stator plate that has a large rubber gasket on the side of the engine,should this be insulated from the rest of the engine.I've only worked on more modern systems and have no experience of points.the bike has only one generating coil(magneto)and no lights or battery as standard.

Answer
There is only one side of the points that needs to be insulated, the moving side.  There is a wire which comes from the wiring loom that goes through the cover and is connected to the point that moves, which should be isolated.  It will only show continuity to ground if the points are closed.  If you're not getting a spark, is the magneto known good?

I'm just trying to recall the system from memory since my son had one of those cute bikes.

Good luck,  Jan