I did get it to fire last night spraying fuel directly into the cylinder, not sure if I will get the chance to work on it today, but this weekend I'll turn it over and make sure there is suction on the intake. If there is I'll go over the carb one last time with compressed air and cleaner, would it be possible for you to get me a picture of this easy to miss idle passage? I replaced all the jets and seals, but it sounds like the passage is in the casting which I am reusing. I have tried to start it as full choke, full throttle, and everywhere in-between and the only time I ever got it to fire was when I sprayed fuel directly into the cylinder and cranked it with a drill.
When I drill started it last night I noticed even with the drill at very low the engine turned over much quicker than when I attempted to pedal start it, the belt looks like it may be original, and while grips it does have a lot of slack, is it possible the belt it to worn and slipping rather than turning the engine over at the speed it requires? I had the carb off last night when I drill started it, so I am not sure if a high starting RPM would create the suction required to pull fuel. I distinctly hear the engine turning over when I pedal, but it's more of a chug-chug-chug (faster but you can clearly hear every compression stroke) oppose to the blending of the strokes into the buzzing sound you hear when you pull start a small two-stroke.