Hi Byomarimba,
Not sure about Max,s suggestion that I should not run it without the blade plate attached, can't see why that would make a difference but I will put it back on and see what happens.
If the cam timing is right it sounds like this engine won't run because there is no flywheel mass. I can see the spark, The blade plate acts as a flywheel because the actual alloy flywheel hasn't enough weight to keep the engine in motion. Without the blade plate the flywheel key
will break as the motor kicks back when firing.
A flywheel serves a few main purposes (in most applications): It provides mass for rotational inertia to keep the engine in motion. It is specifically weighted to provide balance for the crankshaft. It provides a means to get the engine started.
Cheers
Max.