Is this a magneto that has been working OK in the past or what's its history? Make sure the points are opening a sensible amount (0.010 - 0.020 though normal running is about 0.012) on both sides. I would swap the leads, pickups and plugs over as complete sets to see if the problem switches to the other side. n.b Muskrat's post - you must use non resistor caps and non-resistor plugs. Remove the earth brush and clean it, I doubt this is the problem but its an easy job with the mag on the bike. Also, try it without the points cover which may be tracking out in certain conditions. In the meantime I would suggest no plug caps at all, just twist the wire onto the top of the plug. When testing for a spark I usually test the end of the HT lead against the barrel/head, this eliminates any problem with the plug or cap. If none of this works I would take the mag off, and look for issues around the slip ring, maybe lots of carbon dust caused by poor quality pickup brushes - this is a regular problem nowadays.