I thought I would follow up and state that I tested out the engine with the repaired Valach two magnet ignition module and it works OK. The engine fired up and ran pretty good actually.  Using a Top Flite 24x10 propeller with the Bisson muffler, I was getting around 5750 to 5775 RPMs out of the engine which is around 6.5 horsepower.



Here is a boring video of me playing around with the engine.
[youtube]http://www.youtube.com/watch?v=rWHvsunrVTo[/youtube]