I got a few suggestions, to check the needle packing, do a compression test, and do a peak voltage reading at the coil. Here is what I have done to update everyone.
1. compression test is #1 cylinder 110 psi and #2 cylinder is 115 psi.
2. Tested the coils and wires, the charge coil and sensor under the flywheel..all are ok.
3. Re-did the ign spark gap test, and the book said do it at 1/2" and is good
4. when I last did the carb clean out, all o rings and gaskets and needle were replaced and appear to still be ok.
5. I did not do "peak reading meter to ignition coil hot side" because I was looking in the book several pages in and found another test to do. This part was called "Index flywheel, erratic ignition" (see photo). I followed the instructions and actually found a problem. Basically the test is to index each cylinder to a fixed mark on the motor, then start it and using a timing light hook up to each cylinder separately and watch the mark I made for the specific cylinder. According to the book I should only see the cylinder I am connected to firing. Cylinder one I saw only that one firing as it should, BUT when connected to cylinder 2, I saw that I was getting a flash from both cylinders a the same time. Basically when it fired #2, immediately I saw #1 flash right over the #2 mark. I took video of this if anyone would like me to send a copy
According to the book, it could either be bad coil wires or CD unit. Earlier I did try another cd unit and nothing changed. I did order another new one and I will try it when it comes. I will let all know how it turns out. I hope this is it.