SOLVED

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@H A, hold out your hand and put it there! You were on the mark....ie. water!
I had been puzzled to see a thin film of emulsified oil under the rocker cover....wierd on a Fiat 500, especially one that gets the use mine does. After swapping nearly everything electrical; condenser, coil, rotor arm, cap, old points back on etc etc. And checking and re-checking timing, adjusting the one tappet that was a bit tight, I thought more about that wetness.
After my recent sealing of the timing case I degreased everything down there. I only used an old squeezy bottle to wash it off but I think the engine was running for part of the time and will have sucked in some water through the joints in the cowling and possiby around the spark plug holes in it.
So I replaced the air filter as a precaution and completely stripped the carb. On various jets there was a definite sign of something less volatile than petrol

. Murf was still reluctant to start but at least he was coughing now and clearing his throat. I decided that a tow-start might be the thing but couldn't wait for Sheila. Eventually it was like when the rebuilt engine first started, I had to just keep the starter revving like you're not meant to for a continuous 45 seconds or so and away he went again.
Lesson well learned but I must admit to be still leaning towards the 123 ignition after reading up on the "quality" of modern condenser and knowing the terrible quality of the dizzy cap and arm I first bought.
[ame]https://youtu.be/FghjfkJ4Zyc[/ame]
[ame]https://youtu.be/KMj5zL7fZr4[/ame]