Frustrating experience; am I stuck with a bad motor?

Spark itself is easy to check, simply remove the spark plug from the engine, but leave it connected to the wire, ground it against the engine lift the back tire and give it a bit of a spin, you should see a healthy blue spark, if you have that, and compression, then you can move on to spark timing...
 
Check for spark in a dark location because you probably won't see the spark or it'll look very weak in the light
 
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