is the starter cup on top of the flywheel? it has a mesh screen on it held on by two 4ba bolts (small). the starter cup fits into the center of the recoil starter pulley.
if you have one of these, it unscrews in the normal direction. you should have a special tool that undos this without damaging the mechanism. if you dont have the tool, it can be done very carefully with a lage puipe wrench, but this is NOT recomended.
however you decide to take it off, be very carefull. the cap of the starter mechanism will pop off after you have removed the two small 4ba bolts, have a tray under the starter before you pop the cap off, as it has about 5 large ball bearings in it, and you WILL lose one if you aren`t prepared beforehand.
the flywheel is now on a tapered shaft, but has a woodruff key that sets the position for the timing.
i find that a short sharp tap with a rawhide mallet on the cast iron part of the flywheel will usually loosen it up enough for it to lift off.
DONT IN ANY WAY TAP THE SHAFT. if you do you will have problems fitting the starter cup back on later.
assuming that the flywheel has now come off, you will now see an alluminium round cover that is held on by another couple of 4ba bolts/screws. remove these, lift of the cover and you will see the points.
these are made up of the moving part that is operated by a fibre push rod, and a larger static part that looks like a cylinder with a nipple on the top. the wire from the coil is fixed to the top of the nipple by a spring.
the larger cylinder is the condensor. chances are, all you need to do is give the faces of the points set a clean with some fine emery cloth, reset the gap and reasemble. if you go down the new points route, dont forget to give them a quick clean with the emery cloth to take off the protective layer (or you wont get a spark )
hope this helps.
if you get stuck give me a shout, you can pm me if you like with your phone number, i will talk you though it on the phone.
all the best
graham