[jocko]

as for the point gap - yes, I believe you should ballpark it before trying to start - .015-.020 gap (measured when cam is on a high spot) should get it running enough to then set the dwell with a meter (approx 30 deg is what I usually use). I guess, theoretically, if you had an out of whack adjustment and the points weren't actually opening at all, the engine would not fire up - so maybe that's what's happening. Bottom line - as long as the points "break" open a little bit - the engine should fire - but if you didn't adjust them at all, it's possible they are not breaking, which in turn won't allow the engine to fire up, etc. Hope that helps. (the fact that it works fine when you put the old points back in indicates that the coil, wiring, etc is all good to go)

As for ol #7 spark plug, sounds like it's time for some "Old #7" literally.... I would try Aerotruk's suggestion, then I'd be stumped (if it is actually firing). Kinda sounds like 2 separate problems - gas AND oil in the cylinder. Possible that the excess oil is keeping it from firing, then that leaves you with the gas smell since it's not igniting(?) - so maybe root cause it an oil leak (i.e. leaky valve guides, etc) (but to be honest, I'm not real sure on the plug problem)