Well, I though I had the problem figured but not so fast. I checked the magneto and spark plug cable. I found that the wires at the spark plug end of the cable were frayed a bit from some past damage before I owned this mower.
The boot was torn and had electrical tape around it. I removed the boot and the metal connector that the plug sits in. I cut back the insulation to expose good wire, attached a new connector, crimped it and replaced the boot (which is in two pieces broken in the middle).
I can confirm that the magneto is working, power is again getting to the metal connector at the spark plug end of the cable, but still no spark from the plug when touching the engine block.
I removed the plug from the cable, held the metal connector near the engine block and cranked the engine. While doing so I was able to get electricity to arc from the metal connector to the engine.. But it seems to not want to pass through the spark plug new one or the old.
Befuddled.