Juan Hernandez, here is the testing procedure for the ignition of your Tecumseh:"
1. Check for spark using a commercially available spark tester and following the tester's recommended procedure.
2. Check for the correct spark plug and for cracks in the porcelain, pitted or burned electrodes, excessive carbon buildup, and proper air gap setting. Replace if questionable.
3. Remove the blower housing, disconnect the ignition ground lead at the ignition coil (solid state only). Reinstall the blower housing and crank the engine over. If spark occurs, check the ignition switch, safety interlock switches, electrical wiring for shorting to ground, or oil shutdown switch.
NOTE: STANDARD POINT IGNITION MAY HAVE TO BE DISCONNECTED AT THE IGNITION SHUTOFF (AT THE SPEED CONTROL).
4. Check the air gap between the flywheel magnets and the laminations of an externally mounted coil or module. It should be .0125 (.317 mm) or use gauge part # 670297.
5. Check the flywheel magnets for the proper strength using this rough test. Hold a screwdriver at the extreme end of the handle with the blade down, move the blade to within 3/4 inch (19.05 mm) of the magnets. If the screwdriver blade is attracted to the magnets, the magnetic strength is satisfactory.
6. Examine the stator components.
A. Check the ignition cam for roughness.
B. Check the movable point arm that rests on the ignition cam for wear.
C. Check the spring steel on the point assembly for evidence of excessive heat.
D. Check contact points for wear. If they are pitted or burned, this is an indication that the condenser is not functioning properly. If any of the above are faulty, replace accordingly.
E. When replacing the points, also replace the condenser.
F. After the points are replaced and engine is retimed, be sure to clean the points with lint free paper. An engine will not run smoothly if the points are improperly set or coated with even a small quantity of oil, etc.
7. Examine the coil and lamination assembly (either internal or external) for cracks in the insulation or other damage which would cause shorts or leakage of current. Make sure the electrical leads are intact, especially where they enter the coil.
8. Check the operation of the coil using an approved tester. Follow the instructions furnished with the test unit or booklets offered by the Tecumseh Products Co. Engine and Transmission Group Service Division. If the coil or lamination assembly is defective, replace as necessary.
NOTE: IF LAMINATIONS ARE BAD ON AN INTERNAL COIL ASSEMBLY, THE ENTIRE STATOR BODY MUST BE REPLACED SINCE THE LAMINATIONS ARE PERMANENTLY RIVETED TO THE STATOR.
External coils are permanently attached to the lamination and must be serviced as an assembly.
For more information of how to set the timing as well as other things on this engine, get the service manual from here. Hope this helps, good luck.