steveo, check this chip out.
https://www.google.com/url?sa=t&rct=...2A8bwU5MCqf9UA
Also, there is the NanoEFI project, which uses an arduino to run things. https://www.google.com/url?sa=t&rct=...X5-zzu0MGJKJLg

I have the single chip 1cyl engine controller IC on backorder, should arrive next month or so. it contains its own reluctor signal processing and is programmable. It even resolves the signal to a tenth of a degree. So, I just had to have one to poke at and prod.