Whats wrong with the magneto?

Me and my Brother have just taken up the fine art in small engine repair. Although we are just beginners we are trying our best to get this 1976 or '77 Motobecane Cady running. We got it for free and the owner had left it outside in the elements for over 20 years. We replaced the fuel line and it has a brand new set of tires. I doubt we'll ever get it street legal with the lights and taillights working but o well, its a fun project anyways. As long as we can get the motor running. There is fuel flow to the carb. We have opened up the carb and checked for any blockages and cleaned it out as well. When we pedal on the bike with the motor engaged you can hear a popping sound out of the exhaust port which I assume is the compression of air so I guess it has good compression. We opened the Magneto and whats the Breaker Points for Ignition Timing. They break open when the piston is approximately 2mm for TDC which I hear is fairly accurate. Unfortunately when we got the moped it came with no spark plug cap, just a live wire. When you hold this wire up to the engine block it produces sparks. So we bought a spark plug cap and hooked up the wire to it. The engine still doesn't start. What should we do? My assumption is the Magneto isn't powerful enough to jump the spark plug gap. The fuel flow is sufficient. The carb is fairly clean, It sounds like the motor has compression, the breaker points are correct, the magneto does produce a charge (possibly not strong enough). can anyone help, or have any suggestions?

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