Ok... so its been a few days since adjusting the idle correctly, and the problem still persists. Its not as bad, but that might just be because i treated the flooding symptom by adjusting the idle air screw.
It still looks like it has a weak spark.... I'm thinking it may be voltage related... but the battery shows about 12.5v.... might drop to 12.4v when the key is turned. when i connect my battery charger while i kick start it, the situation seems to be better - and starting is easier. The charger would bump up the battery voltage a couple volts - possible giving a better spark. I haven't kicked it over with the charger connected and plug out to check spark. Would be a 2 person job, as i don't want to use the electric start while the battery charger is connected.
There was a brace/engine mount that goes between the rear fuel tank mounting bolt and the engine. When i took the tank off to check the coil it actually fell out as it broken due to fatigue... i didn't bother putting it back in... and planned to either weld it back together or fabricate a new one in the future. I had a thought this morning that this could be an earth from the frame to the engine?
From the battery there are 2 wires coming from the negative terminal. One thick one going straight to the starter motor (from memory), and a thin one - no idea where that goes. So there is no engine or chassis earth to the battery by the looks of it.
When it starts, it runs great (except for a high idle now). That could be the increased system voltage which when running is up around 14 volts.
Anyway, that's where it is at... still frustrating... I could be barking up the wrong tree here... really interested in your thoughts.