If you haven't replaced the spark plug- do so. Verify what wet you see is gasoline. Also verify that the choke is opening. There is also a chance the coil is gone. Check the above first.

thanks for the response. I have tried it with a new plug with no difference. The choke is opening and closing properly and I've tried starting both ways. It is fresh gas on the plug. I was thinking coil but I don't understand why it would fire at all if the coil is bad. Any thoughts? thanks so much for any insight

So diagnoses goes back to the basics. If the engine has good compression, proper spark, is getting the proper air and fuel, it should run provided it isn't out of time- either valve or ignition. Knowing that the choke is opening and that the engine isn't flooded is important. Look into the not flooded part closer. remove the spark plug and air filter to let it breath for a spell. Also verify that the oil level is correct and that fuel hasn't leaked past the carb and flooded the cylinder and crankcase. That is more likely.
Usually when a Kohler coil dies, it plain dies is correct. The coil may however, be generating a poor spark or may be firing it at the wrong time due to a wacked cd in the coil. Two weeks ago, I had one that ran for about 10 seconds after I had disabled the kill wire and then had a weak enough spark to hit the tester and finally died for good. Moral of the story, they have to die sometime!
So your coil, really has 1 wire that acts as a kill wire (white I believe) and the spark plug wire. You may be looking at the regulator? The charge system wires, kill wire and carb solenoid (if equipped) are normally all in the same harness. I'm guessing on a Scotts, you don't have smart spark. Kohler manuals are free at their site.

Here is a link that might be useful: Kohler manuals

thanks for the info. It is not flooding and the oil level is good. Also the engine does have the smart spark system. I don't have the tester but do you think that the Spark Advance Module going bad could cause these symptoms. I'm just really lost because of it sparking outside of cylinder. I don't really know anything about the SAM. I have a feeling these parts won't be cheap so I just want to get it right. thanks for your time and help.

Sure, crush my hopeful thinking that there would be no smart spark! I've not seen a smart spark unit that had spark that was failed. You are getting no backfire at all? Kohler has a reasonably good description in the manual of what goes on. They are also suggesting that connectors are checked thoroughly before testing. Sure that isn't fresh diesel on that plug?;)

Hah, my hope is running short too. No backfire at all, it is gas and all connections seem fine. I actually talked to a kohler support guy today and he had no definite answers for me, he is leaning towards the SAM thinking maybe it was making it spark at the wrong time. I still think that i should get at least a backfire out of it sometime if that's the case. He said that they now make a coil that has the sam built into it which is more reliable. He suggested replacing coil and sam with the new one. I'm not convinced though but maybe I'll try it. I don't really know how to test anything else. Thanks for hanging in there with me, if i figure it out I'll let you know. If you have anymore ideas feel free to share. Thanks.

Have you followed any of the test procedures in the manual? IF you do get the new module slash coil, I would be interested in the # and how it worked out. In any occasion that ignition timing went wacked that I had, it popped /backfired. So the K tech is thinking that is firing near the bottom of a downward stroke or? And you have physically verified the flywheel key is good? Have you watched the valves as you are cranking? Better yet, get an idea regarding if both valves are closed just after TDC of the power stroke?

Could you email me the Part# of the new ign module that replaces the SAM too?
Local dealers dont have a listing for any such thing.
email is foxboss9@netzero.net thanks

never mind found # 12 707 01-S DSAI kit includes new module,scre,harness and instructions