Motorcycle Repair: Honda 65 timing issues, fly wheel, air breather

Question
I have been given a honda 65 to get running.The bike has sat for 25 years.I cleaned carb,tank,points,initially the bike had no spark.After all the tinkering and knew plug the spark was nice and strong.I then put some oil in the cylinder to loosen rings, the bike seems to have not bad compression(don't have small enough end for my tester).I have tried to start the bike and the best I can get is flames shooting back out the air breather.I have only the parts manual for this machine and don't want to mess the timing up more. The points on this model are behind the flywheel and are hard to adjust without removing the flywheel.I did try to adjust them and only managed to lose spark altogether.Could the fly wheel have been removed and maybe put back on in the wrong position thus causing the timing to be late. The guy who gave me the bike swears it just quit on him and he could not get any spark so he just left it the back of his garage all these years.I have pullers to remove the flywheel if I am sure this will help to get the timing back.The serial #is S65E-114708 I am not sure what year this bike even is.Hopeyoucanhelp.ThanxKent

Answer
Kent,
I would suggest taking the flywheel off
and making sure the points are clean and
flat. If they are burned badly, it may need
a condensor also. It is possible the flywheel
key is bad and flywheel has turned and put the
timing out.
Check this page for help on setting timing etc.
http://oldmanhonda.com/MC/Rtiming.html
Good luck!