Re: 1957 35 hp Johnson seahorse won't start
You will need an adjustable gap tester to verify spark. Holding the plug isnt a sufficient test, it needs to be able to jump a 1/4" open air gap to be able to fire in the cylinder. You could also make one fairly easily, google it if you dont have a store nearby to pick one up, they are very cheap though, like 5 bucks.
I think you may need to pull that flywheel again to ensure that the points are set to 020, and CLEAN! Take a business card, dip it in acetone and run it through them after they are set. Even fingerprints can limit spark.
When you installed the coils, did you ensure the laminations were flush with the edge of the mounting boss? Too far back and you will limit spark, too far out and the coil will hit the flywheel.
Also, how are the plug leads? Were they replaced? Are you getting a reading when you put your probes on the coil ground and then inside the plug boot?
What were the compression readings?