I tend to trust a solid-state coil if it sparks at all. I've heard of ones that will spark visibly but not spark good enough to fire -- but I've never seen that personally.
Here's another possibility that nobody has mentioned:
Is the crankcase sealing properly? If not, the cause could be crankshaft seals or the gasket between the reed plate and the crankcase.
Don't forget that a two-cycle engine must have a good sealing crankcase so that, on the downstroke, the fuel-air mixture will compress and at the right moment, shoot up into the combustion chamber.
Good luck.