Thanks for all the help guys. So I went to the hangar to pull off the MTH and inspect it and the suspect Magnetic pickup sensor. I was in luck as my hangar neighbor, who is an electronics guru, was there so we tested the magnetic pickup sensor. Test 1) passed the Ohm test with 676ohms (good is 600-800), Test 2) Passed the voltage test when manually turned and Test 3) he broke out a "Scope" to measure the voltage wave (I am sure I dumbing this down). All three passed, so the magnetic pickup sensor is good.
When I inspected the MTH and pulled off the back cover to check the gap between the teeth and sensor per Rocket Bob's recommendation, this is what I found:
"Oh this can't be good!"
FYI: I found this before we tested the Magnetic Pickup sensor and only effect it had on the tests, was on the scope there was a break in the 'wave' that corresponded to the bent teeth. Taking a close look at the teeth, there are no scratches, dents, dings of any kind on the teeth or the housing wall to say that a piece of debris caused the bending. My initial thought was that upon installing the Magnetic Pickup sensor, the previous owner might have pushed it in too far, but don't think the gap is big enough for the sensor to have caused the problem, also again there are no scratches, dents or dings on the teeth!
So now, here is where I am:
Circuit board: Checks good with ElectroAir
Both Coils: Checks good with ElectroAir
Direct Ign Unit: Checks good with ElectroAir
Magnetic Pickup Sensor: Checks good
10amp Breaker Switch: Brand new, checks good
Magnetic timing housing: 2 bent teeth!!!
Where do I go from here? I don't think the bent teeth would be causing the problem I am having. Also I don't know if the flywheel with the bent teeth can be replaced. Talking with ElectroAir, a new MTH is $350.
My only thought is that maybe it is a wiring issue and I could go in and replace all wiring associated with the system.
Thanks for the help guys!
(Who said ownership wasn't fun? ) haha