300/440/550 picked up a 88 JS550 w/ mods and have a bunch of questions and issues :D

so picked this up the other day for a few hundred bucks. figured would be a fun intro into the water (live in San Diego)
first couple things, is this is what it was listed as coming with.
88 JS550
Coffman exhaust
Coffman waterbox
High compression head
44m carb
K&N Air Cleaner
FULL Bilge and flush kit
New fuel lines

so first up is that it wont start lol, yea, go figure
i changed out the fuel for fresh fuel (40:1)
changed out the plugs and thats about it for now.

it turnes over and gets spark so i was thinking its a fuel issue, however, when i put fuel down the carb it doesnt start either. now, i was going to do a comp test but i just fried the starter trying to start it and have another one on the way. but i think the PO might have also hooked up the fuel lines wrong. heres a pic of how he had them.
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i am totally new to this but have automotive experance. all i could think of is maybe timing is off?

also, i know the rev limiter thing looks to be disconnected as the power lines goin to this are caped.

oh, another issue is that the carb needs to be rebuild as i can see fuel leaking from the throttle shaft. should i rebuild or put a better one on? if better, which one?

i also see that the PO used RVT (red stuff) to seal everything, is this ok on a 2stroke? or should i find gaskets?

thanks for all the help and sorry for the questions, been searching all over this site for stuff and still struggling some. here is a few more pics of how i bought it. stupid kids spray painted it all LOL
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b.lee

Team Cheeseburger
Look for 44mm SBN carb
Those old BN carbs are a pain
They can be found for $50 and up... someone just sold one for $65 a few days back
 
so doing more reading, seems like these things also kill crank keys too. so while i have the starter out and gas tank out figured i would give that a check too wile i wait for parts, and sure enough.
i did think it was acting funky when trying to crank over, so hopfully this will also help.
where do you pick these up? dealer?
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