why would you run a 7? r u running half kerosene? :biggrin: lol j/k anyways, I'm going to assume that you are running a spacer plate for your cylinders if you can run an uncut head. check your compression and report back, and altitude too, for dealing with the +5.
now on to the spark. plug caps can give issues as described, but also wiring and pickup gap. when you said your pickup tested good, did you mean by ohming it, or setting the gap? the gap should be a business card, or around 16-20 thousandths, and the pickup ohms around 110 ohms +/-20, and the coil on the red and green wires should read 13-20 ohms. check the grounds between the frame/motor for good continuity with the black wires at the coil and cdi.