Yes to the wiring you described
Yes, auto parts stores have lugs that should fit. You could put the wire end under the nut and tighten for now to make sure it will work. Radio Shack may also have lugs.
The link is for the AC smart CDI. Not familiar with these but it should only need input from the stator to make the engine run (might need 12vdc for the programmable part). I can dig on that later.
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