I readjusted the gap to as little as possible without rubbing on the flywheel and sure enough it started right up and kept running.
I pulled the spark plug out so there would be no compression resistance and set the gap so that I felt a really good magnetic "pull" when the flywheel magnets went by the coil. I could really feel the magnetic attraction to the coil pickup. There was barely any before closing the gap.
Thanks for all the input.
Oh, by the way, anyone need a new coil assembly for one of these motors. Here I bought one without checking the gap first. Oh well, live and learn.