Aye damo,
Your going to have to get the 'Manual' out, you said you had one!
Condenser will either sit beside the ignition coil under the petrol tank or next to the points beneath a cover on the side of the motor. 'Electrical System' 'Ignition' is the bit you need to look at.
Weemoto have the individual parts listed with images on the parts list specific to the SR500 79-83 (2J4), so you can see what they look like. Total cost about £12-00 inc P&P.
As for the 'piddling' from the carb, with three diaphrams and at least two needles there are plenty of options for a little perished rubber to stop you playing! ;-) It would sound as though either the float needle or float in the carb are sticking or worn and not sealing properly, when there is a lack of demand for petrol from the tank. Hence the flooding. To see a full repair kit for the carb go here [Ebay: 300098717363].
Finally another possible is that the insulation on a coil within the alternator is breaking down and shorting to earth once hot. Whilst it is a b***** it is not insurmountable and a re-wound and insulated stator (techy term, its the bit with all the alternator coils mounted on it) would cure this. It would involve a strip down of the side of the motor, not a crankcase splitting scenario!
With the SR500, think Japanese BSA B33! They aren't bad and with a production run from 1974 - 2000 spares aren't difficult even if you have to go to Germany (they luv them) for the bits.
Persevere my friend.
Regards, Bill