Small Engines (Lawn Mowers, etc.): Tecumseh 8 hp no spark when electric starter is engaged, spark plug wire, starter button

Question
After replacing a bad electric started the engine would not start, had no spark at all. Replaced points and condenser, set gap at .020. I removed the plug and kept it connected to the spark plug wire, grounded the plug to the engine. When engaging the electric starter I'm getting no spark but as soon as I let go of the starter button with the engine still spinning I appear to be getting a strong spark. Any help would be greatly appreciated. Ariens Snowblower 8hp Tecumseh

Answer
I would set the points at .018.  Is something, like a wire, grounding the points when the starter is spinning?

You could dis-connect any wires connected to the points, other than the ignition module and then check for spark.

Service manual link:

http://www.smallenginesuppliers.com/html/engine-specs/tecumseh/Tecumseh_L-Head_E

Let me know what is grounding the points.
Eric