I hope you checked the continuity of the primary and secondary of the ignition coil before you installed it on your 125. you can still do that as it has to be disconnected from the system anyway to test. your coil from the lance is probably still good. I will quote from my repair manual_' it is vital that the engine is not turned over with the plug cap removed and that the plug is soundly earthed when the system is checked for sparking. The ignition sytem components can be seriously damaged if the HT circuit becomes isolated." I believe if anything is fried it would be the cdi. check the ignition coil first for continuity and go from there.
you didn't say whether you had checked the primary winding of the coil. I assume it is ok as the secondary resistance seems to be ok. but for me it is still the prime suspect.
check those coils again for continuity in both primary and secondary windings. you said earlier that the voltage to the ign coil was about 8 volts so everything up to that point appears ok. make sure the coil is ok because the book was pretty specific about the ingition system components being vulnerable to open circuits. if the coil works the check the voltage going to the cdi again. if that is ok, and the coil is ok, then the trouble probably lies in the ignition box/cdi. fuses still ok?
''Sparko, thanks for the reply. I just re measured the voltage coming out of the spark plug cap and it was in between 34-35 millivolts. Not sure why it's up from the 20's the last time I measured it. Maybe it's because I charged the battery? But yes that's Milli.''one last thing. I don't mean to beat a dead horse here but every source i have used says that a 'milli' volt is one thousandth of a volt. if your meter is reading this, unless I am wrong, or if you are in a different country and there is something I don't know, a millivolt is one divided by a thousand volts, or one thousandth of a volt. I could be wrong.
mil·li·volt (ml-vlt)
n. Abbr. mV
A unit of potential difference equal to one thousandth (10-3) of a volt.
I only post this because the reading of the voltage you posted was in millivolts not kilovolts
''kilovolt [ˈkɪləʊˌvəʊlt]
n
(Mathematics & Measurements / Units) one thousand volts. Symbol kV''
I hope we are on the same page and that the reading is what we are looking for. check voltage going to the ignition coil. If it is around 8 volts, it should be much higher after the ignition coil. once we determine that the ignition coil is good, we can go from there. This has turned into a very interesting (for me anyways) thread. Keep trying! Also, only work on one component at a time as then you can isolate things better. I wish someone else would comment on our progress.