Yes it will work, but the 760 ignition is digital, so you will need to change out the flywheel, front cover (with magneto attached) and the CDI.
As Dazza said…it works…but you need the entire system…the parts don’t interchange. Not sure what your saying there?...is it just the back cylinder misfiring? ……if its just one cylinder check the plug , plug boot and lead (remove plug boot and pull on core of lead with pliers….if it all comes out then there is a obviously a break…replace the lead). If your still running the overheat sensor, remove it and see if that solves anything. If its both cylinders misfiring , check the stator plate (bolts can loosen and allow the plate to move and change the timing), & check the resistances of the coils etc as per the manual.
Sounds like your pulser coil is stuffed ... test the impedance according to the specs in the manual. It could also be a broken wire where they go into the flywheel cover. If that is OK it may be the CDI... I have a spare one if you would like to test it.