Honda generator problem

A friend gave me a non running Honda EM5000SX generator that supposedly "ran when parked". The gas was gummed up in the carb and there was no spark. I replaced the coil and now I have spark. But after cleaning the carb it still wouldn't start. So I sprayed a little gas in the intake and it backfires and stops the pull rope like the timing is off. I pulled the spark plug out and took off the flywheel shroud so I could turn by hand and check when the spark fires. It fires when the piston is at the bottom of the stroke. So I took the flywheel off thinking that the key is sheared, but everything is perfect! What am I missing? Besides getting friends who give away better "stuff" what else is there that I can do?
 
my son has a Honda pressure washer motor and it has a timing belt inside of the crank case on his the belt came off we removed the valve cover and could see the top of the belt. From there we put the piston on top dead center an found the two timing marks on the upper pulley aliened them and installed belt and it ran like a top. I found the timing information online
 
You can put the flywheel on with it at TDC, the ignition one, or put it on with the engine at TDC at the end of the exhaust stroke. I think you have to turn the engine 360 degrees and reinstall the flywheel. Probably got messed up when the previous owner was messing with it. Like installing a distributor 180 out.
 
I'm rebuilding a GX 200 at the moment and it looks like you'll have a bigger one of the same style

From that when all is working the flywheel magnet is in time with the piston - i.e. it has to be under the coil at top dead centre. To get a spark at around bottom dead centre the flywheel magnet ought to be half a turn away from this - which sounds unlikely if the crank/flywheel key etc is as it ought to be.

Also means there is a lost spark at the top of the exhaust stroke as there is no half speed distributor.

Try it with the oil alert disconnected - they have been known to give trouble. And you have to dismantle the crank case to get at them - don't just take the external nut off and hope!
 

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