OK you have compression, try a NEW plug ( be sure its a proper 2cycle model, ) get an in line spark tester
see examples, ..
...
I prefer these neon models as they are easier to see in daylight conditions, but it's your call . install the tester,
then put a small amount of mixed fuel ( starting fluid washes down the cylinder walls and can lead to scoring ) into the carburetor throat while holding the throttle WIDE-OPEN ,
CONTINUE to hold throttle wide open try starting engine watching tester to verify spark. If engine sputters
you have a carb. issue, if no sputter no spark, it's ignition issue, also see this link ,
http://www.ereplacementparts.com/article/7348/How_to_Diagnose_Two_CycleTwo_Stroke_Engines.html