i loaned my starter box to a guy to go the the fuel nats in san jose. somehow it dissapeared so he gave me the motor to call it even. i dont think it is gonna be worth it though. but i need to run it to find out if it is gonna even run.

well i have been trying to get it to run right. not happening. have spent around 2 hours on it, plus what i spent at the track the other night. it will not idle down then when i mess with the needles or change the idle, it dies. I thought it had an air leak, so i sealed the carb and backplate with silicone. tried it today, same thing. i am thinking either all 4 of my glow plugs are bad or the p/s needs to be replaced. pretty frusterating. I put the omega/picco back in for the weekend.

Does it have any compression when hot?
I'm thinking that those scratches weren't really minor and since you've sanded them off, it now has no compression. The symptoms you describe confirm this.
Remove the piston/sleeve and see if you can push the piston out the top of the sleeve.

it wont go all the way through, but it will go to about 1 mm of the top.

If you push the lubricated piston really hard, how far will it go?
I presume the carb is sealed. The NS carbs have two O-rings, but one might be dislodged.

Anyway, it's impossible to be definitave without seeing and feeling the engine, but given the symptoms and the sanding out of the scratches I'd still be concerned about how much blow-by it's now experiencing. The piston/ liner seal is critical and I couldn't imagine it's been maintained by using sandpaper, no matter how fine.

And I can't help thinking you have an engine that doesn't work and your friend has a starter box that does. Maybe it's time to talk to him about the situation.

im giving the motor back to him to get it to work. he is going to get it pinched, and if that doesnt work he is gonna buy a new p/s set for it.he will make it right.