As Grumpy mentioned, your max. gap should be 0.5mm, and the engine also needs to be checked for timing as you have adjusted the ignition.
I use the following method:
Take off the cylinder head, and rub a clean spot near the top of the bore (very clean), and get the piston up to the highest point it will go, then mark that point with a white board marker on the cleaned part of the bore, now slide it down (turning anti clockwise), and make another mark 3mm below the first (make sure you are being very accurate, i have a thick marker, so i always draw a clean line, aligning the bottom edge of the line with my target)
Now bring the piston back up (turn clockwise) to the lower mark (3mm before top dead centre)
At this point you need to adjust the points so that they are only just starting to open at this point (make sure the key is in so the cam is in the correct place)
Once the adjustments are made, check it over again to make sure it is beginning to open at 3mm BTDC, and when it hits fully opened, it is at 0.5mm.
