Small Engine Troubleshooting Problems? Ask a Mechanic Now.
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With the ground wire unplugged you should be getting spark, if not then most likely the coils are bad. I would however check the magnets on the flywheel rarely do you see problems with them but they could be weak causing no spark. What did you set the gap on the coil at?
I normally don't do resistance readings on the coils because it really doesn't matter. If the magnets on the flywheel will hold a screwdriver to them then they are good. The only other thing that could be the problem is the coil itself or a ground/short in the wiring which you have unhooked which takes it out of the equation.
If the coil is not set properly it could cause no spark or weak spark. Make sure that you have the coil set at .010 inches to the flywheel magnets.