I really doubt the condenser is the problem.when condensers go bad. You will a lot of spark at the points when they open. You will have very bad if any spark at the coil.
Your solid core wires. Are they copper core? Magnetos should be used with copper core wires.
If you truly have good blue spark out of the coil but not through the distributor cap. My first guess would be the two small rotor drive gears are not timed correctly.
The large rotor gear has two marks. A letter 'R' and a letter 'L'. You need the tooth on the small gear with the bevel tooth lined up with the letter 'R' mark.
My next guess is the coil. A weak coil will have enough energy to jump a fair gap from coil to ground. A weak coil will not have enough energy stored up to make hot spark going through the rotor,then the cap,then through the plug wire,then through then the plug, and finally to ground.
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