Some wire or switch somewhere on the bike may be grounding your coil, so you get no spark. The kill switch is designed to do this and so prevents the engine from running..
Try this if you can.. Bypass all your wiring and switches on the bike by connecting the condenser wire directly to the appropriate magneto ignition wire. They are both probably black wires and may have a stripe.
I don't have a wiring diagram of your bike but thats the basic idea..