Re: 3pg with spark and fuel but won't start!
Try the "string" test. Pull the air intake hose off the carb, hold a piece of string ahead of the carburetor inlet and crank the engine while watching the string. It should be sucked inward, toward the carb. If it pulses back and forth, in & out fairly evenly there is probably a reed valve problem. If it doesn't move much at all it's probably a crank seal problem. The fuel path of a 2 stroke is a bit different than a 4 stroke, so you can have fuel into the carb & decent compression, but NOT be getting fuel into the cylinder.
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