Barry , looking back again through the pics you have posted , it seems the wrong coil has been fitted , it looks to be a “short” coil in place of the correct “long” coil. In all my years of fiddling about with Villiers engines , I can’t say I’ve ever encountered anyone doing this before, when taking into account both coil types are still easily available
However provided the correct bushing has been fitted , I can’t see any reason why it would not work. The correct coil is a 1030.
With no disrespect to the previous owner , this is more evidence that it has been messed with , by someone who , shall we say , is not quite fully switched on.
Moggyjim , flywheel is held on a keyless taper , set timing to 3/16 BTDC.
Andy.