New 2-stroke engine won't start

I'm going to chime in here, yes never go from box to bike, I learned the hard way with that & now it's just a parts engine/paper weight.
 
Soooo since I last posted I've been tinkering a lot with the engine.

- Smoothed out head and top of cylinder with fine sand paper
- Sealed gaskets with high temperature copper sealant
- Torqued down head to 12 ft.lb
- Tightened spark plug (gas was leaking past the threads)

That gave it a lot more compression, but I still haven't managed to get the bike running:/

When I try to start the bike, the engine fires as long as I keep cycling, but then putters out. After that the engine is flooded (fuel dripping out of pipe, spark plug visibly wet if I take it out to check), and I can't get anything more out of it unless I drain the fuel out of the engine and leave it with the spark plug out for a few hours for the residue to evaporate.

So carb problem maybe? I've got the standard NT carb set up with almost no incline, and I've tried:

- Leaning the mixture out by moving the e-clip upward on the needle
- Different idle screw positions
- Adjusting the metal float prong so the float protrudes 21mm when the carb is held upside down
- Checking jet isn't blocked
- Different choke positions

None of that made any difference. I even resorted to trying to start the motor with an electric drill, but all that did was pump drips of gas out of the pipe and onto my garage floor.

Only other thing I can think of is perhaps the spark plug is too cold? I've got the standard Chinese plug that came with the kit, and I've checked that it sparks outside the engine. It's not that cold here though, averaging around 45F.

Any ideas? I'm stumped.
 
It might be an electrical issue. I had a similiar problem and it was my cdi ignition. It would fire the most when I just released the clutch handle or when I'm pedaling fast. The magneto is another device that could be shot.
 
If the engine is brand new & never been ran b4, it could be they installed magneto rotor on backwards. I think they will have spark, but wont start.
 
With piston at top dead center, the keyway in magneto rotor should be pointing at the 1 o'clock area.
 
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Also, make sure the exhaust isn't restricted. I had one clogged with dirt and it wouldn't even sputter until I removed it!
 
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