Just because it seems to be at DC ground doesn't mean it's at AC ground. The magneto is a transformer and the physics of a transformer are such that when energized (the magnet on the flywheel passing by the secondary) each turn will have a voltage proportional to the applied voltage and the turns ratio. If any ONE turn violates this rule, the transformer does what It has to/can to bring this single turn voltage back to where it belongs, even if it means sucking up all the energy in the other windings and core and all that.
When you ground the kill switch, you are shorting out at least one turn and probably numerous and as a result, there is no energy left in the mag to fire the plug....the engine quits.
So for a problem, if nothing is obvious then you may have worn the varnish off a turn or two inside the mag. and you have a couple of wires touching amounting to the same thing as stated above. Otherwise you may have a corroded or bad connection between a wire and connector.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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