The right color would be what we call "new Gravely" red. It's still available at Gravely dealers in 12 oz. rattle cans (Gravely Red #8700). Not exactly cheap though. Others here may be able to give you close alternatives.
Craig Seabrook makes great decals. He is also a founder of the Gravely Tractor Club of America. You may want to get in touch with him. I will PM you his e-mail address.
Here's a pic of an early 8160 like yours with earlier 800 series seat pan, and grill surround.
Warheadrevo, I kept having issues with the points glazing and causing problems. I tried changing the condenser and points with some luck; after a couple years I found out about a kind of electrical ignition called “Points Saver”. It makes it so the points are used for the timing circuit and a lower voltage is used through the points.
I also think there are 3 magnets on the flywheel, I’ll try to remember to dig out a old flywheel I have stashed away to make sure.