A couple of things spring to mind.
Considering the trouble you've gone to change the condensor, if its shorted yes it could very much stop the spark, if open it will at least make a very weak spark and destroy the points contacts in time.
Dont try and measure the spark voltage, you'll kill your meter, the voltage will be several thousand volts, most likely a lot more than your meter can read, plus even if it could measure that kind of voltage you'd miss it as its only present for an instant.
Do you have one of these neon inline spark testers?, they usually light up with only a few hundred volts well before a spark is visible.
3 ohms is more like it for resistance.
Further to alecs comments you really should put an insulation layer between winding layers, and leave 1/2" each end so the ends of the coil wires dont flash to each other, so you wind one layer, put a wrap of insulation, then another layer, then another wrap of insulation and so on, plus the insulation should really be stuff made for the purpose ie have a high dielectric.
Dont try and start the engine without the plug connected, the resulting increase in spark voltage can flash over & damage the insulation.
This guy's done a write up, you dont need a lathe if your inventive:
http://www.brufnut.de/WORKSHOP/LUCAS/lucas.htm