I have the infamous " no spark ". I don't have a manual for the proper specs on testing the parts. When I turn the key on both Neutral and Reverse lights come on. After checking different things I found that there is a green wire bolted to the rectifier. When this wire is not grounded, the reverse light is off. Also, with the ignition on that particular green wire along with the green on the ignition coil and the green on the CDI connector are reading 12VDC.

I am sorry if I am beating a dead horse with this question but I am at a loss.

 

Green wires are earths on Hondas. I suspect someone has disconnected the reverse switch wire and eathed it to the rectifier frame. Most 1980s Hondas were AC ignition. A coil on the alternator windings feeds power to the CDI, a separate trigger coil on the outside of the flywheel or cam provides a timing signal. There is often, though not always a booster wire from the neutral switch to the CDI and an earth to CDI. A wire runs from the CDI to the ignition coil providing the power pulse for the spark and a kill wire (black/white) goes to kill and ignition switches. So you can test if there are AC volts from the stator coil and AC volts from the trigger coil when the engine is turning. You can test the earth to the CDI is earthed, the kill wire earthed with ignition off and open circuit with ignition on. You can test for a voltage pulse to coil when engine is turning.