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Was the flywheel off for any work ?-------------Were coils replaced and not adjusted properly ?-------------Is the tapered friction piece in place inside the throttle grip ?
Thanks for your patience, just borrowed a flywheel puller and there were no shavings anywhere, the plate is tight and a very smooth motion. Coils and points were brand new. I did not see any stress on the coils or scrape marks on the flywheel. Double checked point setting and all seems well. Have not put flywheel back until I hear your thoughts or other possibilities. The motor runs fine, just does not stay in the idle position. ThanksLook for metal shavings anywhere in the engine and then grab the plate and see if it is nice and tight. there should be no wiggle up and down and disconnect the link and it should have a nice smooth motion. If the coils are cracked replace them both and it never hurts to just replace the points and condensers.

Thanks for your patience. I received and installed my new friction piece in the tiller grip, checked the heels for flushness with the bosses and realized one of the coils was not very tight. After tightening the coil and torquing the flywheel down, the motor started on the second pull and the tiller handle stayed in the idol position. I may never know if the problem was a loose coil or the nylon friction piece. What I do know is that it works. Thanks for your expert advice in solving my problem.
Check the heels on the laminates are flush with the bosses the coils are sitting on then tighten the flywheel down to spec 40-45 ft lbs. You can add a kill button while the flywheel is off just run a wire from each set of points down to a kill button. Put a new friction in the tiller grip and you should have a half pull start motor.