For the time being I'd simply clean the existing points. Condensers sometimes go bad, but not really that often. If the points are very badly worn with an offset ridge on them, then you'll want to replace them but if they're otherwise flat, just clean them.
They make point files that are very small files but the sandpaper trick should work. You can get a cheap feeler gauge at places like Auto Zone or O'Rileys for around $5. After cleaning the points, you'll want to turn the engine until one set of points is as far apart as they will go. I'm not sure of the proper gap for your bike, but most points are .014-.016". That number will be marked on the appropriate feeler gauge. First check the clearance beetween the open points with a feeler gauge and see which one fits between them with just a bit of drag. Whatever you do, before you do that, make sure all oil is removed from the blade of the feeler gauge because that will prevent them from making good contact afterwards. If they need to be adjusted, you'll loosen a screw on the plate behind the points and with a flat screwdriver, pry the stationary point just a tiny bit until the feeler gauge has a slight drag. Tighten the screw and recheck the gap because sometimes it moves a bit. After you get them adjusted, drag a piece of paper between the closed points until it comes out clean.
