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it does sound like a really loose rocker arm, maybe the engine jumped time? does it have power at all? does it sound the same on startup?
press your finger on the spark plug hole and crank over engine to check for compression first or feel it with your hand on the kikstarter does it hiss and is ahrd to push?

OK read this carefully as it contains some important notes;
I ran the bike without the shroud as i didnt have it at the time, for a test ride. BAD MOVE it got real hot.

This led to the brand new performance? cdi being burnt out on SOME level.

You can fashion a fakie enricher by making the pin stay in the hole by rigging it, i used electrical tape to cover the hole on the enricher and dropped the pin inside the carb and sealed it, no more choke.

I did an "icebag" test where i iced the cdi to see if it helped with nperformance when hot. It did. the bike fired and ran no problem with the cdi iced. with the ice removed, it immmediately stopped firing. (or fired weaker)

I compared two sparks from 2 different atm-50s to compare spark. one had a super fast blue when hot
and the other had a slow orange intermittent spark.

changed out cdi's and it runs nor problem.

In conclusion, do the "ice test" on your cdi to see if it will run better
it will eventually cut out even with the ice, but you can see the difference big time with the ice

CASE CLOSED
THANKS GUYS!!!!!!!! ;D ;D ;D

Mine did the exact same thing after the rain
thread NO SPARK NIGHTMARE.... read it if you get time.....there is usually a 4 way diode inside of ignition keyswitch ......the only way to know is to tear it apart or test with another IMO.
Attached, mine looked fine but did not work after rain.....after i tore it aprt and rewired it, it ran fine (the keyswitch)
Spray the keyswitch with some wd-40 and turn it back and forth a few times to try to clear and clean it.
the keyswitch where you put the key.....concentrate on that
good luck

Check these things.
1.kickstand/ make sure its on the center stand when firing/check kickstand switch if you have one.
2.Grounds. check all your green wires and make sure you have a clean connection to motor/frame
3.All your connections, go through them thouroghly and make sure they are all tight/disconnect them and inspect them
4.Brake saftey switch. connect together the wires leading to it to bypass it.
5. Faulty ignition is grounded/arced.
check these things
yes chinese scooters do this stuff all the time and it usually ends up being a loose wire
or something simple
good luck my man!!

Im not sure of the jet. Is there a way to identify? there were 2. after lookng at the plug, i changed from the large to the stock?
one. Turning the screw had little fluctuation of idle even to fully closed. This made me belive the enricher was stuck , but i tried another.
I know this must be something simple
I hope......it seems like the choke is stuck wideopen and after it reaches temp it floods.
thanks for the help !!!!!

Ok, so I ran the scooter. It seems to start well and throttle well until it gets just a little warm and then nothing, or it will barely idle, if you give it the slightest amount of gas, it will stall.
Sometimes at that point it will backfire some gas from the carb in a spray and then act flooded......I tried 2 enrichers and cleaned the carb twice. I have adjusted my valves until i am blue in the face and still the same problem.
As soon as it gets to operating temp, you cannot apply throttle.
compression seems fine
spark is ok even when hot
Getting plenty of gas
check valve ok
makes a sucking sound when you give it gas and dies.
manifold seems ok
hoses seem connected right
Alleyoop and the rest of you wise ones
please help
arrg

Thanks guys. i figured out the seizing problem....I think.
not only did he not put 2 bolts in, the cam chain was not around the rear gear in the block!!!! He tightened down the cam when it was clearly off, and cranked it up, the cam chain got stuck after a few rotations and blam lockup. After tearing down and reassembling the motor about 3 times, i realized that. I put the chain on the rear gear, and put the pistion at tdc, and put it back together. Now it turns and turns , no lockup, but it wont run....I am getting spark. it will crank and crank and sometimes go "put"
So I hope ???there is nothing wrong with the engine as far as seizures go, but It wont run, so Im still tryin
help valve lash set at .013
but its not "seized" anymore and seems to have good compression
stumped now and tired.
thanks guys
Case

edit; holy crap.. fired up and ran like a top!!!!!
csae closed.
thanks again fellas