watsjoe,
#2. If you can draw a vacuum on the diaphragm and have it hold, the unit is internally intact. As crude as it sounds, sucking on it with your mouth and holding the vacuum with your tongue will prove it functional. Releasing the vacuum allows the little bracket to spring back, you should be able to see this happen.
A small hand held vacuum pump will get you the same results.
#3. Using a ballast resistor and a bypass circuit, while a tiny bit more complicated wiring wise will supply the ignition with full voltage during START. Some people feel this allows a better start. Using the internally resisted coil is fine too, makes wiring simpler...it's your choice. Your starter switch, if using a foot starter, will need a bypass terminal on it if you choose to use the ballast resistor. Some switches don't have this small connection, but they are available from suppliers.
Stuart