Hey Dan,
I don't believe that the ignition was attached to a battery when not attached to an engine or plug.
I did inquire with the fella that had the engine last night and he said it never left the box.
Gonna try the plug out of the engine thing tonight with a 4.8v pack. and the LiFe pack again.
Although I have my doubts about it being successful due to the LED not lighting up.
I will borrow a 7.4v Lipo from a buddy this weekend to see how that goes as well.
My last option will be to go with a CH ignition just like your earlwb.
My engine also has 2 magnets on the prop hub, which magnet did you set your 58Gx up with?

thx
Dave