Originally Posted by loose vowels
I should mention that while driving in a bit of a drizzle, there was a big pop and some burn residue is now on the clear plastic sleeve that covers one of the electronics connections.
I don't know why people are telling you to mess with the carb and head and such first...
The problems sound electrical as you mentioned you see burning on an electrical connection after riding in the rain, and it is easy to check.
Look at the 3 wires coming out of the motor.
The White one is raw AC from the magneto.
The Blue wire is the timed pulse to your CDI ignition Module.
The black is ground.
Disconnect anything going to the White one and wrap some electrical tape around it.
Now pull the other two and check them for solid connection and no moisture and put them back in, then wrap them in electrical tape too.
Finally, check the plug connector for moisture and put it back on, make sure it feels snug.
Give it a try and let us know, and which connector was darkened.
Note you won't have a kill button at the moment as we need to remove it from the equation.
It could well be a mechanical problem, but a bad ignition connection can cause everything you mention.