Matt sticking at the top is different then at the bottom. As the other guys said that is the pinch and thats a good thing. Thats also why you want the piston at BDC when its cooling so you retain as much of that pinch as possible.
As for the gaskets, all you should have is a thing o ring around the inside of the back plate on the part that actually sits inside the case.
Here is a link on how to seal an engine.
http://www.hpisavageforum.com/forums...ead.php?t=2572
If the fuel isnt making it through the carb into the engine it could just be some dirt or built up oil residue. I had the same problem and I used my air compressor to just force some air through the fuel intake and it worked fine after that. Do check your glow plug and igniter to make sure they are working too.