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Pull the flywheel and check the points. If they are loose then they can cause problems. Use a matchbook cover to set them. If it's closing the gap on the plug then I'd say you need to get a new motor.
no small engine has used points ignition that I know of in many years now. its all solid state electronic ignitions. this sounds definately like something or other is hitting the tip of the plug closing the gap on it. I've NEVER seen that with the proper plug in it, and a J19, or J17, or CJ8 will be just fine for that motor. I cant think of anything that would cause it to close the gap.
The last small engine I worked on was built circa 1967 so you can imagine. But it sounds like there is something not right, the plug is actually over the valves more than the piston. I'd be checking to make sure the valve are the right length. It can wreak havoc if they're not.
Well the plug you have now CJ8(hardware store plug) will work.I have seen one motor like yours have a piece of metal flashing left over from casting the block get stuck in the valves and gave me a hard time tracking down,If you have a local shop around take it there for warranty before you mess it up and then they wont fix it (I am a briggs warranty dealer)I know its something simple unless it ran low on oil It wont cost you anything,If you dont have a receipt they will just use the build code on the motor.The most problems I've had with that motor is carb related and most of the time it was a bad diaphragm or the primer wasn't being pushed enough and some had a little water in it.
Ok I took it back to the place of purchase - where I got sent the local Briggs and Stratton repair agent.
Took it in there, explained my dilema (with the spark plugs closing gap),
He checked the oil, chastised me for only filling it up just past empty, and then proceded to explain that it probably wouldn't be a warranty issue, its probably the wrong fuel or something else I have done...
He said he had "never heard of such a thing" (re spark plugs) - instilled with confidence, I just left it with him, he said he would call me when he works out what is wrong with it.