When taking that back wheel off just take note of which side the spacer goes on, and when putting it back together don't forget the chain adjusters, ask me how I know

Going back to the primary drive gear on the end of the crank. That spacer is actually a "Bellfield washer".
It's meant to go on one way . Domed end to the fine thread of the crank.

Belleville washer with domed side towards nut.

Tore the engine apart for the 3rd time now, I still felt resistance around TDC. First time I tore it all apart it took me about a day, now this 3rd time it took me about 1 hour to fully disassemble everything and split the case. Then another 45 minutes to put everything back together. Yall will see in the imugr link below my ghetto crankshaft true'r I made with 2 nails, definitely not the most precise but the crankshaft is much more straight than it was before. Put it all back together for the 3rd time.

It's no longer crunchy, has significantly more compression, and has strong spark. Yet when I kick it over it wont run... do I have to set the timing after putting it all back together? I figure that's the only reason it wont run, every now and then after 15 kicks it will spurt a little cough out of the exhaust, nothing else. 

It's close to running!! Just not quite there yet... Took the rear wheel off too, cleaned out the brake, got a rear OEM taillight assembly off of ebay, wired it up and it works great!

imgur.com/a/yX0BubH

Last image of that link you can see the bike mostly assembled now

You probably know this but your shifter is not correct. Yes I would check your timing for sure 

don't mean to ask a stupid question, but are you certain that gas/air is making it into cylinder? If you got compression, fuel and a spark that's close is should run

I see the crank pin slightly protruding on the right. Shim should still give running clearance though as looks to be about exactly equal to the ridge on the flywheel outer edge & the step on the shaft, so shim there should sort clearance. I'm a fan of how you look to be turning it to check & set crank 'truing. Simple but effective if it's clearing the bench.

I do in fact know the shifter isn't correct... I just don't know how to make it correct haha! Totally forgot how it was when I pulled it off.

and no not a stupid question at all, I have great spark at every rotation, heavy compression now, and I was squirting fuel down the throat of the carb, when that didn't work i tried starting fluid just to hear it pop... nothing, then I squirted it into the sparkplug hole so it was FOR SURE getting in and nothing but a weird wimpy backfire occasionally. This leads me to suspect timing is the culprit.

It is pretty simple and I hope effective! Guess I will know once it runs... if it does. Couldnt get the crank pin flush on both sides with a simple hydraulic press, it would either go way too far in or just right there.. messed with it for 30 minutes and gave up trying to get it just perfect.

Time to figure out how to time this thing!

Your service manual should show you how to set the timing 

Yes, never been that good with anything electrical. The manual says everything but how to adjust the timing just that it should start to open at 1.8. BTDC, is there a screw I tighten or loosen?