Duralight rates their regulators with a 1 amp load. I have their 5.6 volt regulators on some Li-Po from RadicalRC, and when I measure the voltage from the regulator it is 6.5 volts under no-load.
this is due to the duralight regulator being a switching regulator. Put even a tiny amount of load on it and it will drop down to approx. rated voltage. Just playing around I have found that the CH ignition on my 3.2 Sachs actually runs better (smoother and a couple hundred rpm better) when using a linear regulator on the ignition instead of the switching. The switching reg. that I had used on it was not a duralight reg. Possibly some ignitions don't get along well with switching regs. just like some Rx's don't. Or my situation may be just a fluke
But as far as burning up your ignition.i would have my doubts there. If you can rig up a way to measure the output voltage with the ignition turned on (not running) I imagine you will see that the reg. does what it is suppose to. It just needs a tiny bit of load to work.