There is No way to know where the HSN is set just by looking at a pic.
Stock settings for the HSN is 4 full turns out from closed
Stock LSN setting is flush with the inside barrel of the slide valve.
http://www.traxxas.com/support/index...en&suchbegriff=
A plug with a distorted coil usually indicates a lean tune or debris in the engine.
Return the valves to stock settings and slowly tune for performance.
I also see that you are in Ottawa... Colder weather requires a richer tune than warmer weather conditions so the stock settings may be too lean for your conditions and may need to be slightly richer.