1. re: '.Should have around12- 13 volts dc'
Nope. It's an AC system. Try to measure output with a DC meter and you'll get squat.
2. re: 'Yes two coils like you stated, the lighting coil being behind the magneto '
And the exciter/sparky coil is also behind the magneto (taken to be 'flywheel'). The light coil is on the top...is varnished copper wire. The exciter is on the bottom..it's potted..covered with epoxy, no copper visible.
3. re: 'How do you test the light coil with out taking the side cover off?'
Disconnect it from the light switch. Check for AC presence when the engine is running. Keep in mind that the VR is not in the circuit at that time. Voltages can approach 100VAC.
4. re: 'Is there a main ground in the circuit that you can test?'
The lighting coil is grounded at the coil. One end of the coil is gnd, the other (yellow) goes to the switch. Ground in the system is frame ground. Keep in mind that testing a circuit with one meter probe to ground...seeing a proper signal/voltage...but things still dont' work is a sign that the ground the harness is trying to use is likely the problem. You are introducing a 'good ground' with your meter. Better to check a circuit with your meter ground connected to the harness (where it should be). That way you are using what the bike is trying to use.
5. re: 'Can't figure out where the light circuit is grounded to the frame or whatever.'
As stated...the lighting coil is grounded at one coil end..under the flywheel. The VR (that's 'Voltage Regulator' btw) isn't grounded there. Take your tank off and you will see a number of grounds in the ignition coil area. IF the problem was a missing VR ground, you would have blowed up everything (light-wise) by now.
You mention having a 'circuit tester'. I assume this is a DC tester? It's of no use to you on an AC system.
Get a VOM (Volt-Ohm-Meter). Doesn't need to be a $100 meter...any little meter from RadioShack will do. Start looking for AC at different points in the system with the bike running. The yellow wire to the switch is unregulated (like I already said) and can get pretty hot..around 100VAC (volts-AC). As soon as the switch is 'on', the VR is put into the circuit (the red wire). You should see the AC drop to around 12VAC. If you see that drop, you know the VR is working.
If you don't have a meter, how do you know your bulbs are good? By looking at them? That is not too good a way of sorting that out. Check them with your new meter...set to ohms. Keep in mind that there are TWO filaments in the headlight, but only one of them is used. If you 'see' or 'test' a filament as good..make sure it's the one the bike is using (look at the socket to figure out which one that is).
Most likely thing wrong is you have two burned out blubs. That's most likely 'cuz that's most common.
Your new meter will sort that out quickly.
BTW..DO NOT do anything that will take the VR (red wire) out of the circuit. Example: Bypass the switch by jumpering the yellow wire to the headlight while you give it a 'good' ground with another jumper to the frame.
Touch the throttle and your blub just got ate by 100VAC.