Pic attached of choke. It's actually the front sprocket/clutch assembly that's in the way.
I will flip the rocket key. What do you mean that it is 10 degrees retarded? I notice the key moves quite a bit as well when I slide the flywheel on. I have to hold it down with a flat head screwdriver to keep it in place while I install the flywheel.
I read that I can apply two layers of electrical tape on the flywheel during install to create separation between the coil. Maybe because it is rubbing is the reason the bike won't start?
The air gap between the coil and the flywheel is indeed a problem and expect some more problems with the coil too because when a coil makes contact with a magnet the coil or the flywheel magnets usually becomes compromised.....Ive seen magnets morph and the poles on a magneto flip because of it...…….I had to flip the pickup on one too [XR100]which worked for only so long before it went kaput for good......…….
The airgap is .020"...…...Tapes come in various thicknesses...I use a sliver of cardboard from a cereal box that's like 3/8" wide by 3-4" long...…...You sandwich the cereal box sliver between the coil and magnet..tighten the coil mount screws and pull out the cereal box sliver..
The pusher spring for the throttle EPR stated looks like this...………..
And yes the rocket key is placed in the crank slot in the "retarded" position......Not the worst case as it will enhance topend revs a lot more than it will enhance bottomend takeoff power and thats ok too with a lightweight 6year old rider under 100lbs riding it...…
Stock woodruff key sets the timing at a neutral Zero timing point...…..
When the raised offset is oriented to the right ;- its set advanced...[advanced gives more takeoff uumph].
When the raised offset set to the left on a reed inducted engine its set retarded...………[retarded gives more topend revs]
On some of my builds I have a 6.0volt auto advancing/retarding CDI ignition system which still retains the stock woodruff key..
On my twin turbo 5.3 LS powered Range Rover my boost timing master retards the timing for each pound of boost applied...Its pushing 16lbs of total boost so at full boost the computer is supposed to be retarding the beasty a full 16 degrees..Im going 20degres for safety...LOL.….This is done with a power programmer but essentially the same principal..If you apply too much boost without properly retarding the timing it can be quite detrimental for the crank and the whole engine at WOT,,,LOL
With your setup and level of where youre at the only thing I see wrong is the fact you set the airgap wrong...The engine has no porting or power mods and hasn't been degree'd to see where it actually stands so theres no real right and wrong in your case....Its when you start building stouter power with tighter squish tolerances and higher compression or having an adult rider aboard as a rider is when the choice of how the rocket key is set becomes a lot more critical.....
For the choke ….Flip the V-stack with choke arm 180 degrees...I usually put a slight bend in the choke flap so it makes slight pressure of the choke plate between the V-stack slot to keep the choke from dropping into the hole......……..