First, let me say that this is a great site for Kawasakis! I've been lurking and searching while I waited for my account to be approved. Loads of good info here!

Now on to my bike. I just picked up a '89 250. Long story short, the engine was supposed to be rebuilt top and bottom and running great, the only problem was supposed to be a stuck float. I didn't get the hear the bike run, but bought it anyway. I get it home, find that the overflow tube on the bowl is broke off, and fixed that. Float was fine. Put gas in it and fired it up. It blew water all out of the head gasket and smoked white like it was burning water too. It ran a couple minutes like this, then I shut it off. I pulled the head off and cleaned up the cylinder deck and head, and put it back together with sealant on the gasket and it stopped leaking water, and wasn't blowing water out of the radiator anymore.
The bike refused to run now though. It would start, run a second or two, and die. I tried new plugs, checked spark, went over the carb again, checked the reeds, etc. Every now and again, it would try to start then die. Most of the time it wouldn't do anything at all. Then all of a sudden, it started, cleaner out, and started to run great. It idled for about 5 minutes and warmed up, so I got on to take it down the road. It would start to sputter right about when it should get into the power band. Low end power was great. I made it about a mile down the road before it started dieing out, and just quit all together. Now it refuses to run.
I've checked spark, it's strong and blue. Compression is great, it's got a fresh top end on it. I put a little gas in the spark plug hole and tried to kick it over, still won't even pop. Could it be the timing is off? I pulled the flywheel cover and there was water in there. The gasket was old and torn up. There was rust on the flywheel and the timing plate. I cleaned up the flywheel and pickup with sandpaper and got all the water and rust out that I could. Should I pull the flywheel and check the stator, and that the key isn't sheared?