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Another question... why is there oil in there? Must be normal or Ed wouldn't have mentioned it being there, but why?
My guess is that the oil's designed to be a cooling agent. You probably had a short that ate that coil up and no amount of cooling would have helped. Now, while you're in there check the sensor gap and set it a 0.8mm between the tip of the sensor and one of the tabs on the rotor to forestall future coil and ignitor problems.

A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort. Herm Albright (1876 - 1944)
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