Scary noises

Hi all, I hope someone has some/any advice for me. I recently started a project on an 87 TRX250X. I tore it down and rebuilt it from the ground up. The guy that had it before me tore apart the top end of the motor, looking for a reason of no spark. Obviously Stator, needless to say, the head was slapped back together just enough to be put on craigslist.
Before cranking, had good compression, great spark, and perfect carb. After some starting fluid blew out of the carb in flame form, I proceeded to kick and kick and kick, no luck!! I then hooked it up to my truck and did the 2nd gear drag down the street, no fire, then I lost all compression. Any ideas, suggestions?? Im am hoping it jumped time, but am planning on it being the worst. Any ideas would be great, thanks!!!