This is starting to get to me . . I want to get my hands on it and sort it out
You say that the condenser is new . . But I have had new condensers fail on my Land Rover so its worth checking it out.
The condenser is connected between live and earth.
When the points close it discharges.
When the points open it charges - diverting the current momentarily and preventing an arc being drawn across the points.
If it fails it could provide a permanent short to earth (but still with some resistance).
I would do three things next.
1. Remove the points from the motor. They should just consist of the base plate (with fixed point) and the moving point and spring.
With the points hanging open - check if there is a current (continuity) between the base plate and spring.
If there isn't then the moving and fixed points are correctly isolated.
If there is a connection between the two, the plastic sleeve isn't working.
2. If Test 1 is successful:
Re-assemble the points and the feed from the coil, but don't connect the capacitor. connect your light across the spring (moving point) and the base plate/earth.
With the points open there should be light as the bulb is the only thing in the circuit (apart from the coil primary windings).
With the points closed the light should go out completely. This is because the 'live' wire from the coil is now grounded and should be at ground polarity (i.e. there is no potential difference between the wire and ground so no voltage).
3. If test 2. is successful:
Re-connect the capacitor and try it again. If you get different results I suggest the capacitor is faulty.
If all is successful, check the coil by connecting an HT lead and plug, ground the plug and then ground and break the live wire from the coil. You should get a spark at the plug when you break the connection between the live wire and earth. As suggested above.
Its just a matter of taking it logically one step at a time, removing any variables (such as the condenser and the coil) as you go.
Good luck, I wish I could pop round and play with it
Bob.