The piston rings were in good condition, (engine rebuilt by previous owner.) I got the engine all back together again both cylinders 110 PSI compression
As Miki mentions above, 110 is low, this engine after a top end rebuild should be 150. Honing and reusing pistons on these 2 strokes doesn't really work well, you should consider a cylinder bore and a new set of pistons. Anything much below 130 on the 787 isn't going to cut it. You didn't do a proper top end rebuild, and you need to readdress this before wasting any more time trying to get it to start.
I pulled apart the rear electrical box and found that it had water in it before and the screws inside the coil pack had rusted off and the wires fell out when I touched it.
Yesterday I pulled apart the rotary valve and sucked grey nasty fluid out of the bottom of the crank case (due to head gasket not seated,
Both indications the engine has been flooded at one point, you may be on borrowed time even if you get it running. The crank bearings will prematurely fail once rust sets in.
Personally, and I've been through this after acquiring my flooded 97' GTX, start over, pull the engine, with the service manual close by go through everything. Replace accordingly, I was at $900 with the engine rebuild acquiring what I needed. Those carbs and the fuel system need particular attention, new OEM kits, needle/seats, pop off test, etc.. Don't skip steps where it calls for 515/518 or synthetic grease. Chase threads, follow torque values and sequence, use a degree wheel, etc. Inspect, verify, and clean everything. It's not a quick job to accomplish, take your time.
I'm not trying to doubt your abilities, but details area important if you want it to start and be reliable.