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Rebuilding an older K161 and it will only spark once in about five pulls. It has new points and condenser. Can coil be causing the problem? I thought they either worked or didn't.

Do you have a battery ignition, or a magneto type? Got any pics? Is this the one that you were trying to figure out what it was?.
If so, you better throw up some pics......

Yes same engine with magneto..View attachment 21863View attachment 21864

That condenser is older than I am.

I had the new one on, but was checking to see if it might have been a bad condenser and replaced old one with same results.

Can you snap a pic of the new condenser?

It came as a kit for that engineView attachment 21865

Remove the kill wire from the circuit, set the point gap at .018 and check for spark. This manual. Sec. 8 might also help.
http://www.mymowerparts.com/pdf/Koh...al-K91-K141-K161-K181-K241-K301-K321-K341.pdf

Thanks for info. Gap is set at .020 but will adjust to .018... No kill wire on this system.. Point cover has button to push. Can a coil going bad produce this kind of symptom???

You do have a kill wire. It is the extra wire attached to the condenser.