Thanks for the advice.
Gap tester - I just grounded the spark plug and gave the motor a slow pull while in my semi-dark garage. I didn't see any sort of spark. I also turned it by hand a few times.
**I will pull the flywheel tomorrow and clean/inspect the points. I will post photos when I do this.
Spring - I ordered one today for $24.00. The local lawn mower shop was really interested and dug deep to find one that would work. I was going to post the mower spring part number that would fit if they found one. No such luck, but they've been helpful on other parts for my other motors.
Compression - I sprays some 2-cycle oil into the chamber before attempting to rotate the flywheel. Then, I worked it in with the plug out to make sure there no resistance or scratching. It spun smooth. I put the plug back in, and spun it by hand. When the piston was nearing tdc, I could barely spin it with one hand - had to use two hands to get it over the hump/tdc. I didn't hook my gauge up to it yet because I assumed that the above is a sure sign of solid compression. I will hook it up tonight and let you know (I work till 7pm).
Carb - According to my friend, the motor ran consistently for his father as recent as three years ago. I plan running some seafoam through the carb, then putting some fuel in the tank and doing a small vacuum test on the main jet to see if fuel passes freely. If it does, I may not pull it off and rebuild. I'm still up in the air on that one - if there are any issues, I will do it without hesitation. Thanks for the tip on the cork float - I've never dealt with a cork one before. I will research carb kits for this motor today, or do I need to make my own gaskets?
Fuel Mix - The manuals say 26:1, and you posted 16:1. Was that a typo?
Thanks for your help. I will keep posting my progress.