First off, check spark w/plugs out.. spark must jump 1/4" from each plug lead consistently with a blue/snappy arc when pulling the recoil.
If poor/intermittent spark, check condition of the wires coming out from under the armature plate.. especially where they flex. Clean/reset points as boobie^ suggests, and check armature plate for any lateral play when you pull the flywheel. Any lateral play in that plate will translate directly to point gap, and you'll never get it running correctly w/point gap jumping around. Post back if the plate moves laterally, and we'll help w/easy fix. Also, ignition misfires can occasionally cook a condenser, so you may as well change those out while you're in there.
If the spark tests blue/snappy, you may have a different issue. Plugs should be Champion J4C (J6C if used for extended low speed operation), or NGK B6S gapped to .030"
Good luck!