Rrrrrrr, need help on this one.

The condenser on the coil should be connected to POSITIVE side of coil. It is there to supress radio noise. I would indeed remove it until you find this cause.

40a is likely not large enough. You have any idea how large your alternator is? Output current that is?

I have few ideas. This is weird.

So it still does not start? You have a test light? Some alligator clip lead "test leads?" How about a multimeter. We can make a few checks