So, I tried removing the ground from the green/white wire and then connecting the ground like the manual shows and now it no long kicks back because there is no spark! And just to make my blood pressure go up a little more I found another hidden surprise in the harness wrapped in some nice black vinyl shrink tube.
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That is the two wires from the pickup, so someone has either replaced the wires themselves or the pickup unit and now I am questioning if it is even the correct one for this stator since it has a green/red wire. Does anyone know where I could get just a known working pickup? Also, if someone running a cr ignition would be kind enough to unplug their cdi and check for continuity between the green/white wire at the plug and their ground, I would be most gracious.