The 2 wires going under the flywheel are 1 to the points from the coil, and one from the points to the cut-out. I have an electronic igniton conversion that can be fitted without removing the flywheel, although your original coil must be servicable (most are).
Alternatively, you can replace the entire coil assy with a later electronic unit, cut and forget about the wires going under the flywheel, and connect the new coil directly to the cut out.
phil_saunders@bigfoot.com
Phil Saunders, August 2008