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You don't have to have a battery with an E/I all you need is a good alternator and a battery eliminator charge unit or a capacitor in line.
you only need to set ether piston on 38 degrees before TDC, an Tri-spark E/I is a single spark ignition and fires both plugs at the same time as do most E/I ignitions.
you need 3 things to fire up. correctly timed spark, gas and compression, you are missing one. and it's likely compression. Do a compression check.
.004 will work for valve gap, all you really need is just a gap when the motor is hot.
And just out of curiosity you say you used a 750 intake cam in a 68 motor. the 750 cams don't have a breather hole in them so how is your engine going to breathe?
 

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I actually had asked you about this before.... I made a breather for in the timing plug hole for the crank. I mean I think everything is good but when I just crack the throttle as I kick it it will only backfire.... I am gonna try a compression test I guess.
ok that will work, now verify the compression and get it timed right and you should be able to ride soon, backfiring indicates bad ignition timing or bad cam timing.
 

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the cam wheel can go on the cams in 3 different positions, the correct one is the keyway lined up with the wheel setting mark.
you could use a timing plug pin to find 38 BTC but the 68 motor is a little weird, some have a normal timing plug in the top valley and a normal notch on the crank that indicates 38 BTC, and some have a timing plug under the engine near the front of the bike with a crank notch there at 38 BTC, and none in the top valley.
so the best way to get close to it is put the piston at TDC by feeling it through the spark plug hole and then by turning the rear wheel in gear backwards until the piston goes down 3/8" backwards. that is 38 degrees before top center. then make sure you have the ignition dot lined up with the Counter Clock Wise hole one on the ignition plate.
 

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no 4 or 8 thousands isn't the deal killer. I would not set them at 8k that would be a real noisy top end.
you say you rotated the motor a little more...which way backwards or forwards?
 
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