Thanks for your quick replies, and sorry I havn't been able to respond earlier!
Decompressor works fine, also tried removing it and filling the hole with a spare spark plug - no result, although of course a bit harder to pull the starter. As far as I could see, the muffler/port is ok (BTW is there a trick to make the top clip refit easy, i found it a real pain...). Havn't checked the seal under the starter yet, was holding off on even more disassembly to see if there was some kind of magic bullet cure beforehand!
Bruce, the baseplate is still in place and no evidence around the nut to indicate it has ever been removed. No play side-to-side nor up and down. Thanks for the tip not to use Aerostart (it was one spray in desperation!) - is that because of the lack of oil to lubricate the cylinder or does the esther eat into the seals?
Thanks again, Dean.
Ok this is what I want you to do.
1. Remove the muffler and try to start the engine (will be noisy but need to see if it is blocked).
2. Remove the plastic mount that the carby connects to and replace the 'O' ring that is between it and the cylinder.
3. The plastic section that the carby connects to check the 'O' ring for nicks.
4. Check that the magneto has now movement.
Can you have a look at the area that the carby jet/screw (where it screws into) to see if you have any cracks down the shaft.
Reply to these questions before we further.