UPDATE: FINALLY WORKING - NOT BEFORE SOME HEAVY ELBOW GREASE!!!!!!
Emailed Zoombicycles.com and finally got a reply from John. He sent over a parts diagram that indicated how to dissect the motor, which is exactly what I had to do this weekend.
My bro-in-law the mechanic and I worked on the motor all afternoon on Saturday. We took apart the motor and oiled pretty much each component. It took a while and a lot of energy, however, you should've seen my smile when the motor came alive!!!!
I'm surprise it took soooo much work to get the motor to work. That sprocket/clutch should not be that stuck. Was it just constructed poorly or just terribly banged up during shipment?!
I am glad John made some helpful suggestions, but honestly, if you're not keen with motors, such as myself, you're better off paying someone to install it for you because it is just that difficult!!!!
Side note: previous I saw some guy selling the kit on Craigslist for ~$100. I did contact him asking why he's selling, and he said he just can't get it installed and working. So certainly I don't think installing this motor is easy and can be done within 3 hours unless you've done it before or are a gear head!!!
5.0/10 for Zoombicycles for finally responding and being kinda helpful. It should've have taken this long to get some customer service.
Now on to tweaking the bike so the engine will run smoothly!