Something fundamental is incorrect.
Maybe the points are not the correct parts.
Maybe the points have not been installed on the stator housing
In any case, if you can afford it, there is no need to suffer with points in the year
2012. Things have moved on and electronic triggering is more precise and more
Back in the day the hot setup was Krober ignition, but that was a long time ago.
I haven't messed with this stuff in a while but I believe points are not the only means
of triggering ignition on an RD these days.
The problem with points is that the cam follower wears quickly and because of this
the timing will not remain as it should be for very long. Also, if the crankshaft main
bearings have excessive runout the point cam ( which is attached to the end of the
crankshaft ) will "wander" and this means that ignition timing will vary significantly.
So even in the best circumstances points are a bad solution and a constant source
You do not want ignition timing to be imprecise or variable on a performance 2-stroke engine. This
can destroy an engine in less time than it took to write this sentence. Ok, maybe the
entire engine won't be destroyed, but a holed piston is not a good start.
You need to post some good close-up photos so people can see what is going on.
Words aren't going to give us the clues we need to solve this.