This didn't seem to be on their website anywhere, but it is the troubleshooting guide they distribute with new DYNA III kits.  So if you inherited a bike that already had a DYNA III kit (that thing that doesn't look like points) you may need to reference this.  These units are pretty rock solid, but occasionally they do go.  Usually the electronic module is the thing to go, but occasionally the sensor plate will go.  The reason for that is these bikes were designed wonderfully to keep water in the ignition area.  If water sits in there for too long it can destroy the sensor plate.  Drilling a small hole in the bottom of the case is one solution.

From Dynatek:

The DYNA III Electronic Ignition is manufactured from the highest quality parts and materials available, using the greatest care possible.  Although failures can occur, many times operational problems are due to improper installation or intermittent connections.

1) If a 4 cylinder engine runs on only 2 cylinders; remove the spark plugs, replace in caps and lay them on cylinder head.  Turn engine over and watch sparks to determine which are missing.  Disconnect (key off) the white and the black sensor wires and reconnect in reverse (black to white).  If sparks transfer to opposite plugs, it indicates a bad sensor.  If they stay with the same plugs, it indicates a bad electronic module, a bad coil, or a problem somewhere in the wiring not associated with the sensor plate.

2) If a Moto Guzzi runs on 1 cylinder; remove spark plugs, replace in caps and lay them on cylinder head.  Turn engine over and watch sparks to determine which is missing.  Disconnect (key off) the white and black sensor wires and reconnect in reverse (black to white).  If spark transfers to opposite plug, it indicates a bad sensor.  If it stays with the same plug, it indicates a bad electronic module, a bad coil or a problem somewhere in the wiring not associated with the sensor plate.

3) If a BMW Twin with a -1 ignition runs on 1 cylinder, it indicates a bad sensor.  If both cylinders are out, it is most likely a bad electronic module, a bad coil, or a problem somewhere in the wiring not associated with the sensor plate.  If the bike uses a -2 (dual) ignition, use the procedure in paragrah 2.

4) MODULE / COIL TEST

Disconnect the sensor wires and touch the female (module end) of the input wires to ground.  Do not touch the 12 volt (red) sensor wire to ground.  You should get a spark at the appropriate spark plugs every time the inputs are grounded.  If not, it indicates a bad electronic module, a bad coil, or a problem somewhere in the wiring not associated with the sensor plate.

5) If a GL1000 fails to idle, and runs poorly at low engine speeds, the most likely cause is a defective ballast resistor, or one of the wire connections associated with that part.

Dynatek

164 S. Valencia St. * Glendora, CA 91741 * (626) 963-1669 * FAX (626) 963-7399