Thanks for all the help guys. I took all the advice on board and re-checked everything and then also did some more digging.
I love a good murder mystery.........
I took the cylinder back off. Ring end gap perfect, piston on correct way. Cylinder perfect. I cleaned everything back up and torqued to spec.
Last night while crying in my wine and reading the wisdom on these pages, i remembered something. I wasn't getting a smell of petrol and that sucking sound.
So, i also pulled out the old leak down tester and made some adaptors to check her out for leaks.
Pic above shows old crank seal on the shaft in the position i found it when i took the stator/rotor off.
I couldn't even get any pressure into her. Air was just gushing out from behind the stator/rotor. I took them off and low and behold.... the left crank seal wasn't even on. It was just sitting loosely on the shaft and not even in the recess. I slid it off the shaft and inspected it. It looked OK, but i had a new genuine Yamaha one in my box.. so fitted it properly with lube etc and a length of 40mm pvc pipe. Did the leak down test again and held 5 psi.
Whacked everything back together, sprayed a couple of squirts of "Start ya Bastard" in the carb and second kick she burst into life.
And i don't mean farts, smoke, bogging and rough running. This old girl hasn't run in years, but she burst into life as crisp and clean as a brand new bike. Revved to the moon, idled perfectly, sounded crisp and powerful.
I would of clicked her into gear and spun her up the street but that has to be another day. I have no clutch cover or cable fitted, no brakes and no gear lever... That will be part two of getting her checked over before a full rebuild.
Most folk say you need 3 things to at least get a fart out of a 2 stroke. Fuel, air and spark. I am adding another one. Vacuum. If you have a big air leak, you won't get any vacuum to pull fuel through to the cylinder.
Cheers everyone,
Alex