A problem I had with my 29-year-old 3.5 was that it would not fire even when points and condenser were OK. Plug would fire when removed and laid on head for ground, but would not fire under compression. The cause was that the "bearing" (hole for crank where points are) became oval shaped. The crank would move away from the breaker pin inside the case when under compression. Therefore, points wouldn't break, and plug wouldn't fire. No fix to this other than another engine case which would probably be in same shape. In this case I strip engine of all good(?) parts for another project. Or you can give them to another fool like me who tries to restore hopeless cases.
Good luck
Robert Brown, September 2008