If I understand what you are saying that means that the plug should fire after the magnet passes the sensor. When I hook up the plug and spin the prop around the plug is firing exactly when the sensor is passed and not after.

Another strange thing I noticed is that if I spin the prop around counter-clockwise it fires right at the sensor but if I just keep spinning it a little farther and then stop and spin it back clockwise the plug will fire before it gets back around to the magnet.

Yes, the engine did smell like gas when I opened the box.