Timing dots lined up...
Have you checked with dial indicator that the piston is at TDC and the dots are lined up or off 2 degrees?
This was it! The stator plate came loose, the screws were almost completely out and timing was as far off as the slots would allow. Put the dots back together and used RED loctite this time instead of blue. took it for a spin and whoopdeedoo theres the snap I was hoping for I think the bike is running pretty good now. at least it pulls harder than the worn out 250 that was in there before.
On a side note, (just talking bs) I rode the bike to a so called performance shop nearby. the guys came out and looked at it, told them what issues I have been having, that it was slower than the 250 was. They told me the one guy was a 2 stroke racing legend in the early 90's and they know everything about them. They said my problem was because my rear sprocket (40t) is too small, and that the "snap" of the 250 could pull the taller gearing better, and that I needed a dynojet jetting kit for it. And that they could order both those parts for me that day and get my bike running great. Jokingly they said they should have charged 100 bucks for the information. I just said thank you for your time and rode off. amazing how they are still in business. I could be completely wrong and correct me if I am, but a 500 with more torque should be able to pull gears much taller than a 250. And if they can't tune the kehin thats in there, they have no hope with a dynojet kit either. enough ranting.
I just want to say thank you to everyone for your help along the way, and especially to you, Gary for reminding me of something I should have checked a long time ago. Noob does as noob is! After 16 years of riding I'm still one.