Moped Army

I just bought a Garelli VIP2V, It was running ok for the first day although once I got it into second gear and went full throttle it would shot off. Finally my bike shot off in second and now it wont start. My Garelli had been siting for 10 years, I re-gassed and oiled 3oz to the gallon, with no luck. It seems to me like it's stuck in second and wont go back to first? Maybe I seized the engine? The max speed I got it up to was about 20 mph. Any Ideas? I attached a pic.... the previous owner said it was a 1982.....