Don't back it past two compressions with the spring or the spring will slip down through itself and there will be a lot of trouble

18-8 is the prop. The 20-8 is too big

32:1 Pennzoil Two Stroke Air Cooled get it at Advance Auto Parts

The grounding strap is probably the ignition kill wire if it goes to the coil. If it is shorted to the crankcase, it will stop the ignition

The fitting on the crankcase was probably to pressurize a smoke oil tank? Plug it!

The manual is below

get parts here
http://www.bennettbuilt.com/