Is a rusty looking cdi the reason my bike won't start?

That sounds like a resistor cap to reduce radio interference. I would use a straight through like the NGK. If available.
 
The cap below is on a new cdi that does not use the nipple, notice the small clip that catches on the threads on the plug. The second is one on one of my bikes that uses the nipple adapter, notice how close it looks to yours inside.
 

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Yes I see that thanks for that. Very helpful. Should I buy a new sparkplug with a nipple and try it? Do I really need to replace my. Cdi cap?
 

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This is a classic example of the suppliers copying the same instructions over and over that sometimes don’t match the products in the kit you receive.
 
Yeah I thought it was odd that I had to remove that screw. I'm very new to this so I appreciate your patience. Thanks for your help and I'll try the new plug tomorrow!
 
Hi folks I got the bike up and running by leaving the cdi dry out and putting tinfoil on the top of the spark plug in place of the spark plug crown. I'll go out to pick up a new spark plug anyway because the tinfoil is a bit dodgy. Thanks for all your help I wouldn't have been able to do this without it!! 🚴‍♂️🚴‍♂️🚴‍♂️
 
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