RE: G38 starting problems
The Gap between the wheel and the coil is NOT that critical. Also , the G-38 starts very easily by hand. Try flipping it fast. Its not rocket science, if you flip it fast, it should start, even if the gaps are not to the nearest millimeter.
My guess is, you are not turning it fast enough with the drill. Try hand flipping, as RCIGN says, its EASY to start by hand, but you need to flip it past the magnets.
Second guess, you flooded it so badly, it does not have a prayer of sparking.
Dnot start taking stuff off and adjusting it, chances are you will screw up a perfectly good engine.
JettPilot