Were you able to pull the reed block from the case? The only other thing I can think of is inigtion. Even if you have spark it may not fire. I have seen this before, I would take the Primary coil and test w/ omhmeter. You'll need a repair manuel for this. Once you have the values for the coil resistence it can be tested. The secondary coil is very rarely the problem. Next would be the black box, best if a Suzuki shop has the test equipment, not all do, they like to sell stuff you may not need. these are hard to test without the correct tester. Another test you could is to mix soap and water in a spray bottle and spray around the head gasket while cranking, bubblles will appear if the head is leaking.[same thing as a air leak] With the flywheel off, spray around the top seal for leaks.
Rust on coils and magnets can also short out the signal, can cause timing to change. hope something here may help. keep me posted on the process. If all else fails, I'll send my phone # by PM... Michael..
Sometimes these simple motors can be a real headache if there are two or more problems..