Another troubling issue is the double timing image that went away. Usually a problem in much higher mileage machines I'm still perplexed by the fact it went away. When you put a timing light on the flywheel and check the timing mark you should watch the mark climb in the window as you raise the speed of engine with the throttle. End result should be full advance and a solid mark. Just a little fuzziness might be one degree. Anything less than 2 degrees is still OK I think. Snowbum talked about this several years ago but I don't know if it's on his Web Site. I could go look but I might not make it back.
A '78 bike has ordinary points, not in a can, correct?