Thanks again for all your advice and help. I rebuilt my flywheel and reinstalled. Installed brand new spark plugs(QC10PEPB) and drained any old fuel out and replaced with fresh non ethanol. The engine turns over very nicely but no firing at all. The #1 light is on both key on and cranking. I have not checked the capacitor but that will be my next step. It looks like I need to pull the J1 connector and test the appropriate terminals? I previously tested the stator and it had no shorts.
Last summer right before this happened, I had several instances where the engine would not fire immediately like it normally does. It would take maybe 30 seconds of key on before the engine would fire. I wonder now if that could have been the capacitor going bad and requiring more time to charge before the engine would start. Any thoughts?