It sounds to me that you have done most all of what is needed. Just take some fine sandpaper to the magnets in the flywheel. After sanding, wipe it clean, then spray it with carb cleaner to remove any possible residue. Now give the magnets a spray coating of clear polyurethane coating. The flywheel will never rust again. Replace the source coil and install a new spark plug. A plug that is carboned up can lessen spark voltage. The last item is the battery. A weak one can rob power. Please rate my answer. Thanks.
You can clean up the rust on the flywheel with some scotch brite that will be ok. The source coil is important everything runs from that. it can be replaced. I have found them on the web check out Ricky Stator. I have also replaced the whole ignition system on old yamaha motors with CDI setup. but you have to find a whole setup that will fit to your crankshaft. you need flywheel, stator plate with all electronics, cdi box, coil, all the wires.
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